Hero MotoCorp Shares Drop 4% on Weak October Sales, Tops Nifty Auto Losers

Corp's stock plunged 4% to ₹5,322 on November 4, emerging as the top loser on the Nifty Auto index (down 0.5%), after reporting a 6.4% YoY decline in October sales. Key Sales Figures: Total dispatches: 6,35,808 units (down 6% from 6,79,091 units in Oct 2024). Domestic sales: 6,04,829 units (down 8% YoY). Exports: 30,979 units (up 43% YoY). Despite the dip, the company highlighted strong retail sales of 9.95 lakh units and expressed optimism for FY26 growth, citing a robust product lineup and expanding global presence. Rival Bajaj Auto posted a 4% YoY rise in two-wheeler sales. Broader industry trends were positive, per UBS: two-wheeler sales surged 52% YoY in October, boosted by tax cuts and festive demand. However, premiumisation is shifting share to players like Eicher Motors (Royal Enfield) and Honda from Hero and Bajaj. Morgan Stanley forecasts 16% YoY volume growth for Hero in the rest of FY26. The stock has risen 33% YTD in 2025, with Nifty Auto up over 11% since August GST cuts.