After the auto companies released their February sales, auto stocks were in focus on March 1. In regards to Budget 2021, FM Nirmala Sitharaman had announced a vehicle scrapping policy that allows owners to scrap their 20-year old vehicles and avail incentives on the purchase of new personal vehicles. For commercial vehicles, the scrappage policy will be applicable for 15-year old commercial vehicles without a fitness certificate.
The Nifty Auto was outperforming other sectors at 0959 hours, up over 2 per cent. This was led by gains from Mahindra & Mahindra, Hero MotoCorp and Ashok Leyland which jumped 3-4 per cent each. These were followed by Motherson Sumi Systems, Maruti Suzuki, MRF, TVS Motor Company, Eicher Motors and Bajaj Auto.
Maruti Suzuki was trading at Rs 6,979.80, up Rs 107.15, or 1.56 per cent, at 1008 hours. It has touched an intraday high of Rs 7,032.85. The company’s sales for February were up 11.8 per cent at 1.64 lakh units against 1.47 lakh units.