AN UNEASY CONDITION FOR TOYOTA INVESTORS

While leading carmakers in India have shown a steady growth rate , Toyota Kiloskar Motor showed a drip in sales last month. Maruti Suzuki, Hyundai and Mahindra & Mahindra showed sales growth on January due to improved market conditions. Maruti Suzuki , India’s largest car seller sold 1,42,150 units in January 2019 as compared to 1,40,600 shares in January 2018. This sales drop in TKM will affect their stock in short term. As some products from Maruti like Alto and Wagon R witnessed rise in sales by 0.3% last month. But like Swift ,Celerio ,Ignis ,Baleno and Dzire showed decline in sales by 3.5%. Mahindra & Mahindra showed growth rate of 6% last month. According to them they believe that advancement in rural areas, improvement in Forex and low fuel prices are the main reasons behind this. Hyundai also witnessed slight growth in their sales with total sales of 45,803 units in the last month.TKM however had 9.14% drip in sales as compared to last year . According to Toyota Kiloskar Motor , the reason behind their low sales can be year-end schemes. They also effected due to tightening of vehicle financing availability which added more challenges to them. Though this slight variation in their sales can affect investors in the mean time. Improvement can be noticed in February according to the sources. Shares can start showing their recovery in next quarter. Fluctuations can be seen for next few months.

Leave a Comment

Your email address will not be published. Required fields are marked *