Hindustan Motors scales 20% on healthy volume growth

The shares of Hindustan Motors scaled by over 16% today and 20% during the week as the company reported healthy sales of its passenger cars during the month of February even as the other car manufacturers mirrored the impact of economic downturn through poor growth in sales.

The company has reportedly sold 814 passenger car units that includes Ambassador and Pajero Sport, during the month of Feb '13 against the total sales of 304 units sold in the month of February last year. The sales of its light commercial vehicles have also doubled to 12 units for the month against 6 units sold a year ago.

In fact, in the month of Jan'13 too, Hindustan Motors had reported a healthy growth over the same month of the previous year as it sold 727 units in Jan '13 compared to 361 units sold in Jan '12. Its LCV sales last month were also impressive at 21 units against 5 units sold in Jan '12.

Though low in absolute numbers, the distinctive annual sales growth in percentage terms reported by the company in the past two months comes at a time when other car manufacturers are struggling even to match the sales numbers of the previous year, let alone report even marginal growth.

Tata Motors, for instance, has reported its lowest sales growth for the month of February in the past three years while Maruti Suzuki too sold 8% less units in Feb '13 as compared to a year ago. This company has in fact now stalled the production at its Gurgaon plant, which produces entry-level petrol cars, for one-day citing inventory issues.