After opening the day marginally higher, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the metal sector and realty sector witnessing maximum buying interest.
The BSE Sensex is trading up 86 points (up 0.3%) and the NSE Nifty is trading up 29 points (up 0.3%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.8%. The rupee is trading at 64.41 to the US$.
In the news from automobile space, as per an article in the Economic Times, Maruti Suzuki has outperformed the Indian automobile market in both production and sales growth in the first six months of 2017. This comes as the company climbed further up at the top of the Indian automobile market.
The company’s domestic sales grew at 14% in the first six months of 2017, compared with 8% for the automobile market.
With the above development, the company now also leads the utility vehicles and vans segment, apart from the car segment.
Speaking of automobile sector, during the January- May 2017 period, India’s PV sales expanded by 11.3% YoY. This came when the top two markets, China and the US saw a declining trend where volumes declined by 2.6% YoY and 9.8% YoY respectively. This can be seen from the chart below:
India Tops Growth in PV Sales
The above double-digit growth was led by companies like Maruti Suzuki, Hyundai, Honda and Tata Motors.
Going ahead, there are many growth drivers that augur well for the Indian automobile industry. As we stated in yesterday’s edition of The 5 Minute WrapUp…
Another interesting aspect of growth is low penetration of PVs in India, which is currently pegged at 19 vehicles per 1,000 people. In comparison China penetration stands at 76 per 1,000, UK 455 per 1,000, Germany 544 per 1,000, USA 360 per 1,000.
It is important to note that developed markets such as USA, UK and even China have reached the saturation point and are slowing down, enabling developing markets like India to grow at a faster pace.
