Meanwhile, the S&P BSE Sensex was down by 216.88 points, or 0.56% to 38,513.94. The BSE S&P Auto index was down 1.19%, underperforming the Sensex.
TVS Motor Company (down 3.41%), Tata Motors (down 3.27%), Bajaj Auto (down 1.57%), Mahindra & Mahindra (down 1.09%), Escorts (down 0.42%), Hero MotoCorp (down 0.4%), Eicher Motors (down 0.3%), Maruti Suzuki India (down 0.27%) declined. Ashok Leyland was up 0.24%.
The Society of Indian Automobile Manufacturers (SIAM) reported that domestic passenger vehicle sales declined 17.54% to 2.25 lakh units in June 2019 over June 2018.
The domestic car sales have fallen 24.07% to 1.39 lakh units in June 2019 over June 2018. The total two wheeler sales declined 11.69% to 16.49 lakh units, while the sales of commercial vehicles fell by 12.27% to 70,771 units during the period under review.
Meanwhile, a foreign brokerage expects auto companies' Q1 to be one of the weakest quarters in recent times. For its coverage universe (ex-JLR), the brokerage forecast 5% YoY revenue decline and EBITDA/PAT is likely to decline 23%/34% YoY. Margin is likely to come off by 250 bps YoY on lower operating leverage, the brokerage explained. However, lower commodity prices will support margin by 50-100 bps in Q1 & Q2.