Shares of Maruti Suzuki India today gained 2 per cent, while Mahindra and Mahindra rose 3.2 per cent on strong car sales.
Top four players in passenger car segment had registered double-digit volume growth in April.
“Narrowing gap between petrol-diesel fuel prices and increase in share of first-time buyers helped Maruti’s Mini segment register growth of 36 per cent off a weak base,’’ Jefferies said in a note.
“Moderating cost of ownership incentivised purchases of first-time buyers,’’ says Jefferies.