Hyundai Motor, Ashok Leyland share: NIFTY Auto soars 1.6% as strong October sales numbers impress investors

The index surged as much as 1.6% or 410.35 points to hit an intraday high of 25,833.05 during Monday’s trading session. At around 2:49 PM, it stood at 25,700, marking a 277.30-point, or 1.09%, jump.

While NIFTY Auto hit its 52-week high level of 29,865.50 on August 10, 2026, the gauge touched its year’s low of 23,560.10 on April 2, 2026.

The index has given investors 3% returns in the past week, and has risen more than 1% over the month. However, on a year-to-date (YTD) basis, it has fallen over 10%, according to data on the National Stock Exchange (NSE).

The index was bolstered by buying in the shares of major auto manufacturing companies, including Hyundai Motor India, Ashok Leyland, Tata Motors Passenger Vehicles, Maruti Suzuki India, and more.

Out of NIFTY Auto’s 15 constituents, 13 stocks advanced and three declined.

October auto sales

Buoyed by robust festive demand, domestic passenger vehicle (PV) dispatches crossed the record 5-lakh mark in October, with leading automakers such as Maruti Suzuki, Hyundai and M&M reporting their highest-ever monthly sales.

Domestic passenger vehicle wholesales in October are estimated at 5.25-5.3 lakh units, compared with 4.6 lakh units in October 2025. This translates to year-on-year growth of around 13%-15%, despite a high base a year ago.

"My take is, the industry should be between 5.25-5.3 lakh units," said Partho Banerjee, senior executive officer at Maruti Suzuki.

Market leader Maruti Suzuki reported domestic passenger vehicle dispatches of 2.12 lakh units in October 2026, representing growth of 20% YoY, while Tata Motors recorded a 21% YoY growth to 73,894 units.

Mahindra & Mahindra (M&M) posted a 2% YoY rise to record 73,338 units, and Hyundai reported a 16.7% increase in its domestic wholesales to 62,799 units.

With Dhanteras and Diwali in the first half of November, October wholesales largely reflect original equipment manufacturers (OEMs) stocking up dealers ahead of peak festive deliveries. October registrations, by contrast, are expected to decline against last year's high festive base, as a significant share of festive deliveries shifts into November, said Gaurav Vangaal, associate Director for Light Vehicle Production Forecasting at Mobility Global.

October's growth comes on a high base. In 2025, sales from mid-August to mid-September were subdued as buyers held off purchases, expecting a GST cut. After the lower rates took effect in the last week of September, demand rebounded, driving strong sales through the festive season and into October.

"Strong festive demand, coupled with healthy momentum in both domestic and export markets, helped us set this new sales record," said Hyundai Motor India MD and CEO Tarun Garg.

Mahindra & Mahindra's Automotive business President Velusamy R also noted that October was a landmark month for the company, with the festival season together with a refreshed portfolio keeping the demand strong.

The passenger vehicle industry has maintained robust growth momentum since GST rates were cut last year. Lower borrowing costs have also improved affordability, while recent income tax reforms have left consumers with more money to spend. In the first half of the current financial year, domestic passenger vehicle sales grew 28.3% to 20.55 lakh units.

Here’s what analysts said about October auto sales

They further stated that October wholesale growth was the strongest for TVS, Maruti and Hero MotoCorp, compared with the estimates. They added that while truck demand remained strong, tractor wholesalers declined amid a high base and weakening demand.

Here is how the stocks are performing on November 2

On Sunday, it reported its highest-ever total monthly sales, including exports, of 82,299 units in October, marking a 17.7% YoY rise, driven by record domestic sales of 62,799 units. It grew 16.7% YoY. Its exports surged 21.1% to 19,500 units, the automaker said.

The Chennai-based automaker’s total sales, including exports, stood at 21,888 units, up from 17,820 units a year ago, according to an exchange filing.

Its sales in the Medium and Heavy Commercial Vehicle (M&HCV) segment grew 28% to 13,927 units from 10,865 units, while the Light Commercial Vehicle (LCV) segment registered a 14% increase to 7,961 units.

Its total domestic sales rose 24% to 20,224 units from 16,314 units a year ago, with 32% growth in the M&HCV segment to 12,646 units. Domestic LCV sales climbed 13% to 7,578 units.

Its domestic passenger vehicle sales increased 21% to 73,894 units last month from 61,134 units in October 2025, Tata Motors Passenger Vehicles Ltd (TMPVL) said in a statement.

International business passenger vehicle sales jumped manifold to 1,532 units in October compared to 161 units a year ago, it added.

Domestic passenger vehicle dispatches rose over 20% to 2.12 lakh units, while total domestic dispatches, which include Super Carry and sales to other OEMs, grew around 19% to 2.26 lakh units, according to an exchange filing.

The strong growth despite a high base in the comparable period reflects robust demand in the market amid peak festival season. Recently, Maruti Suzuki said its inventory levels were low, with stock of around 15-16 days in dealerships and pending bookings of around 2 lakh units.