TVS Motor drops on poor Nov sales

TVS Motor Company dropped 3% to Rs.357.35 in early trades and continues to remain in the red, down some 2.5%.

Like the rest in the auto sector, TVS too reported a flat sales number for the month of November. Its total sales was almost status quo at 2.25 lakh units on a YoY. Two-wheeler sales were up less than 1% at 2.19 lakh units and three-wheeler sales were down 2.4% at 32,829 units.

Exports during the month were at 32,829 units as against 33,621 in November 2015, a decline of 2.35%.

Obviously, this was before demonetization and we could see the effect of much lower sales in December. This would be true for all auto companies as there are reports that car companies are saying that there is much lower sales after ban of Rs.500/1000 notes.