Auto Stocks Outlook for the week – 11 to 14.08.2014
Automobile manufacturers' stocks are seen gaining in the week ahead as consumer
sentiment, particularly for passenger cars and utility vehicles has improved. Yesterday,
Society of Indian Automobile Manufacturers released sales figures for July. Local
passenger car sales grew for the third consecutive month in July, up 5.04% on year to
137,873 units.
The Industry body sees domestic passenger car sales growing 6-7% in 2014-15 (Apr-
Mar), Director General Vishnu Mathur said yesterday. In 2013-14, passenger car sales
decreased 4.65%, the second consecutive annual fall.
Stocks of automobile manufacturers will also get direction from the Apr-Jun earnings that
Tata Motors declares on Monday. Tata Motors' consolidated net profit for the quarter
ended June is likely to double year on year to 37.43 bln rupees on the back of strong volumes of UK-based subsidiary Jaguar Land Rover.
