Auto stocks rally up to 4% on July sales update: TVS Motor, HeroMotorCorp top gainers

Auto stocks were trading higher on Monday, August 4, despite the companies witnessing a slow growth in passenger vehicles for July amid demand softness.

Nifty Auto gained 1.51% to touch an intraday high of 23,764.90 on Monday with almost all stocks rallying. MRF was the only laggard, declining 1% on the index.

TVS Motors was the most contributing stock on the Nifty Auto index, jumping 3.66%. Hero MotoCorp (3.48%), Tube Investments of India (3.07%), Bharat Forge (2.5%), Eicher Motors (2.21%), and Exide India (1.99%) were the other top gainers on the index.

TVS Motor Company on Friday had reported a 29% growth in its total sales to 456,350 units in July 2025 as against 354,140 units in the same month last year. Its total two-wheeler sales rose 29% to 438,790 units last month against 339,676 units in July 2024.

The Chennai-based firm’s domestic two-wheeler sales had increased 21% to 308,720 units in July compared to 254,250 units in the year-ago period.

Two-wheeler maker Hero MotoCorp had reported a 21% rise in dispatches to 449,755 units in July 2025. In the year-ago period, the same stood at 370,274 units. Domestic sales were at 412,397 units against 347,535 units in July 2024.

Meanwhile, Eicher Motors’ Royal Enfield unit had reported a 25% year-on-year increase in domestic sales at 76,254 units last month as against 61,208 units in the year-ago period.

Shares of Motherson Sumi also surged 1.87%, followed by Ashok Leyland (1.85%), Bosch Limited (1.78%), Bajaj Auto (1.66%), and Mahindra & Mahindra (1.40%).

Bosch Limited is expected to announce its June quarter earnings on Thursday.

In the two-wheeler space, Bajaj Auto said its total domestic sales declined 13% to 183,143 units in July compared to 210,997 units sold in the corresponding month last year.

Further, commercial vehicle maker Ashok Leyland reported an 8% year-on-year increase in total sales at 15,064 units in July.

Meanwhile, Mahindra & Mahindra (M&M) had posted a 26% YoY growth in total sales at 83,691 units in July. The company has also said it completed the acquisition of a 58.96% controlling stake in commercial vehicle manufacturer SML Isuzu Ltd. and has renamed it as SML Mahindra Ltd. (SML).

Further, shares of Tata Motors (0.87%), Balkrishna Industries (0.13%), and Maruti Suzuki (0.09%) were also trading higher following their July sales data.

Maruti Suzuki India had seen a marginal rise in vehicle dispatches to dealers in July, while Tata Motors and Hyundai Motor India saw their sales dip.

The country's largest carmaker reported the dispatch of 137,776 passenger vehicles in July, registering a marginal increase from 137,463 units in the year-ago period.

Hyundai Motor India said its dispatches in the domestic market declined 10% YoY to 43,973 units in July.

Tata Motors’ total passenger vehicle dispatches in the domestic market declined 12% YoY to 39,521 units in July.