NIFTY AUTO trades lower after September sales numbers; Hero MotoCorp bucks the trend

The index currently has 15 constituents.

Last seen, the NIFTY AUTO index was trading 0.33% lower at 26,679.60 levels. Out of 15 components, nine were trading in the red, and the other six in the green.

The top losers on the index were Ashok Leyland, Eicher Motors, and Maruti Suzuki India (MSIL) – down between 1 and 2%.

On the flip side, the biggest gainer on the index was Hero MotoCorp (up 2.25%), followed by Sona BLW Precision Forgings (up 1%) and Tube Investments of India Limited (up 0.66%).

The subdued performance of the auto sector today could be attributed to profit-booking, as most stocks have seen a remarkable rally in the recent past.

Besides, the September sales numbers have also been encouraging.

How auto stocks have performed in 1 month

The NIFTY AUTO index has gained around 3.5% over the past 30 days. Maruti Suzuki India shares have gained nearly 6%, while Eicher Motors has gained over 9%. Tata Motors has advanced nearly 4%, while Mahindra & Mahindra (M&M) has risen around 5%.

September 2025 sales

Auto majors Maruti Suzuki, Tata Motors and Mahindra & Mahindra reported robust sales in September 2025 as reduced price tags owing to GST rationalisation led to record demand in the Navaratri period.

The month also saw Tata Motors and Mahindra & Mahindra settling at the number two and three positions, respectively, in vehicle wholesales, ahead of Hyundai Motor India.

Maruti Suzuki India said its total domestic passenger vehicle dispatches to dealers stood at 132,820 units last month compared with 144,962 units in the year-ago period, a dip of 8 per cent.

The domestic wholesale figure for the month should be seen in the context of logistical constraints towards the last part of the month, the auto major stated.

"This surge in demand sets a promising tone for sustained growth in the months ahead," Tata Motors Passenger Vehicles managing director Shailesh Chandra said.

For the company, September 2025 emerged as a watershed month with sales of 60,907 units, the automaker's highest ever, marking a substantial 47 per cent year-on-year growth, he added.

Mahindra & Mahindra said its utility vehicle dispatches to dealers surged 10% year-on-year (YoY) to 56,233 units in the domestic market last month, as against 51,062 units in the year-ago period.

"Thanks to the impetus from GST 2.0 and the preceding weeks' pent-up demand, we have seen robust growth in dealer-reported customer retails during the first nine days of Navratri, with over 60 per cent growth in the SUV segment and over 70% growth in the CV segment compared to the first nine days of Navratri last year," Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said.

Hyundai Motor India said its domestic wholesales saw a marginal increase to 51,547 units last month from 51,101 units in the year-ago period.

"Post announcement of GST 2.0 reforms, HMIL is witnessing a synergetic alignment of both domestic and export markets now growing in tandem – a true double-engine growth," Hyundai Motor India Ltd (HMIL) COO Tarun Garg said.

The company's domestic sales in September stood at 51,547 units, driven by vibrant festive demand and strong customer interest across all segments, he added.

Toyota Kirloskar Motor said its wholesale to dealers in the domestic market stood at 27,089 units last month.

Two-wheeler performance

In the two-wheeler segment, Bajaj Auto reported a growth of 4% year-on-year in total domestic sales at 325,252 units last month. Eicher Motors' Royal Enfield said its domestic sales were at 113,573 units last month as against 79,325 units in the year-ago period, up 43%.

The two-wheeler major sold 6,37,050 units in September last year.

Hero MotoCorp reported an 8% year-on-year (YoY) increase in its sales at 6,87,220 units in September.

TVS Motor Company said its total sales rose 12% to 5,41,064 units in September from 4,82,495 units a year ago.

The total two-wheeler sales grew 11% to 5,23,923 units last month compared to 4,71,792 units in the year-ago period.

The company's total exports grew 10%, with sales rising from 1,11,007 units in September 2024 to 1,22,108 units a year ago, the company added.

GST 2.0

Last month, the government announced a GST bonanza where the Centre has moved to two-tier slabs of 5% and 18%, effective from September 22, the first day of Navratri.

This has led to the petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm in length and diesel vehicles of up to 1,500 cc and 4,000 mm in length moving to the 18 per cent rate from the current 28 per cent.

Motorcycles up to 350 cc are now taxed at a lower GST of 18% against 28% earlier.