Low interest rates, coupled with government support in the form of a stimulus package have been driving vehicle sales to a record high.
The BSE Auto index surged 5% or 382 points to 7,553 this week as compared to the previous close of 7,170.
Escorts was the major gainer on the auto index, gained 15% at Rs 149. Tata Motors, Ashok Leyland and Apollo Tyres advanced 10-12% each to Rs 711, Rs 50 and Rs 59, respectively.
Ashok Leyland today reported an over two-fold jump in commercial vehicle sales at 7,869 units in February compared to the same month last year.
Tata Motors received an order to supply 1,000 air-conditioned school buses, estimated at Rs 230 crore, to Saudi Arabia.
MRF, Bharat Forge, Mahindra & Mahindra, Hero Honda and Bajaj Auto zoomed 4-8% each.
Bosch advanced 4% to Rs 4,616 on the back of 68% net jump to Rs 159 crore.
There were only two scrips on the losing side. Amtek Auto declined 7.5% to Rs 185 and Maruti Suzuki was down 0.5% at Rs 1,463, respectively.