Auto Stocks Slide on Weak September Sales

Auto stocks came under sharp selling pressure on October 1 after several manufacturers reported September sales that missed expectations. The Nifty Auto index fell more than 3 percent.

uto plunged nearly 8 percent to around ₹9,950–10,000 after total sales rose just 5 percent to 5,38,443 units. Domestic volumes dropped 9 percent to 2,94,456 units (two-wheelers down 12 percent), while exports surged 32 percent to 2,43,987 units—still below Street estimates of 11–12 percent growth. Mahindra & Mahindra fell over 2 percent despite 15 percent growth in total auto sales to 1,14,874 units and 14 percent rise in SUVs, as tractor volumes declined sharply. Maruti Suzuki shares slipped about 2.5 percent even after strong domestic PV growth of around 37 percent. Escorts Kubota and Eicher Motors also declined. Hyundai Motor India was the lone gainer, rising 1–2 percent after posting record total sales of 77,916 units, up 10.8 percent and ahead of estimates. The sell-off reflected concerns over soft domestic two-wheeler and tractor demand ahead of the festive season, despite overall passenger vehicle industry growth of about 21 percent.