Auto Stocks Fall As September Sales Trigger Selling: Bajaj Auto, M&M, Hero MotoCorp Among Top Losers

Auto stocks came under heavy selling pressure on Thursday after automobile companies released their September sales numbers, with Bajaj Auto, Mahindra & Mahindra (M&M) and Hero MotoCorp among the major losers. The Nifty Auto index fell around 3% in intraday trade on the 1st of October, hitting its lowest level in more than four months.

Bajaj Auto shares fell as much as 9%, while M&M dropped around 4% and touched a fresh 52-week low. Hero MotoCorp and other auto stocks also traded lower as investors assessed September volumes across two-wheelers, passenger vehicles and commercial vehicles.

The selloff came even though September sales were higher for several manufacturers. Bajaj Auto, for instance, reported a 5% year-on-year increase in total sales to 5.38 lakh units. However, its domestic sales fell 9%, while exports rose 32%.

Hyundai Motor India was a notable exception. Its shares turned positive after the company reported its highest-ever monthly sales in September, giving investors a contrasting signal within the auto sector.

Auto Stocks Fall After September Sales Updates

The sharpest pressure was seen in two-wheeler stocks. Bajaj Auto was among the biggest losers after its September numbers showed a sharp difference between domestic and export volumes. Domestic sales declined even as exports recorded strong growth.

M&M shares also fell sharply and touched a fresh 52-week low following its September sales update. The stock's decline added to the pressure on the Nifty Auto index.

The broader auto pack also remained weak, with Hero MotoCorp and other major manufacturers trading lower. The moves came as investors compared the latest monthly volumes with expectations and looked at the underlying performance across different vehicle segments.

Auto companies had been expected to report stronger September volumes as the festive season approached, with passenger vehicles, two-wheelers and commercial vehicles expected to benefit from demand.

Bajaj Auto, M&M Lead Auto Stock Decline

Bajaj Auto's September sales rose 5% year on year to 5,38,443 units. However, domestic sales declined 9% to 2,94,456 units, while exports jumped 32% to 2,43,987 units. Exports accounted for more than 45% of the company's total September dispatches.

M&M also came under pressure after its sales numbers. The stock fell around 4% and touched a new 52-week low during Thursday's session.

The reaction shows the difference between headline sales growth and the mix of those sales. Stronger overall volumes did not necessarily translate into gains for auto stocks, particularly where domestic volumes or specific segments remained weak.

Hyundai Shares Buck Auto Sector Weakness

Hyundai Motor India stood out from the broader sector decline after reporting record September sales. The company reported total sales of 77,916 units, its highest monthly sales figure, according to reports.

The company also reported growth in both domestic sales and exports, while its shares turned positive after the sales announcement.

The contrasting moves across auto stocks put the focus on individual company sales performance rather than a broad sector-wide improvement. With the festive season now underway, September volumes are also being assessed alongside the demand outlook for the coming months.

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