Bajaj Auto Shares Crash Nearly 8% as September Sales Disappoint; M&M, Maruti Also Fall

Auto stocks came under heavy selling pressure on Thursday, October 1, after September sales numbers from several automakers fell short of market expectations. Bajaj Auto led the decline, while Mahindra & Mahindra (M&M), Eicher Motors, Maruti Suzuki and Tata Motors Passenger Vehicles also traded lower. 

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Hyundai Motor India stood out from the pack, gaining after its September sales came in ahead of estimates. 

The weakness pulled the Nifty Auto index down 3.15% to 25,465.80 at around 11:08 am, making it the worst-performing sectoral index at the time. Five auto stocks were among the biggest losers on the Nifty 50. 

Bajaj Auto Falls Nearly 8% as Sales Miss Estimates 

Bajaj Auto was the biggest loser on the Nifty 50, with its shares tumbling nearly 8% to Rs 10,021. 

The company sold 5.38 lakh units in September, lower than the CNBC-TV18 poll estimate of 5.79 lakh units. Overall sales, however, were still 5% higher compared with the same month last year. 

The company’s domestic sales declined 9% year-on-year to 2.94 lakh units from 3.25 lakh units. 

Exports offered some support, rising 32% to 2.43 lakh units from 1.85 lakh units a year earlier. 

Two-wheeler sales increased 5% to 4.51 lakh units, while commercial vehicle sales grew 9% to 86,949 units. 

M&M Slips as Tractor Sales Drop 21% 

Mahindra & Mahindra shares fell 2.6% to Rs 2,874.50 after its September sales also came in slightly below expectations. 

The automaker reported total sales of 1.15 lakh units during the month, compared with the CNBC-TV18 poll estimate of 1.17 lakh units. Overall sales were still 15% higher from a year earlier. 

Passenger vehicle sales grew 14% to 64,092 units from 56,233 units in the year-ago period. 

Exports, however, declined 7% to 4,019 units. 

The company’s tractor business saw a sharper fall. Total tractor sales declined 21% year-on-year to 52,100 units from 66,111 units. The figure was also below the CNBC-TV18 poll estimate of 58,667 units. 

Escorts Kubota, Maruti and Eicher Motors Trade Lower 

Escorts Kubota also reported weaker September volumes, with total sales falling 16.7% year-on-year to 15,214 units from 18,267 units. 

Selling pressure was visible across other major auto counters as well. 

Eicher Motors shares declined 2.9%, while Maruti Suzuki fell nearly 2.5%. Tata Motors Passenger Vehicles was down 1.6%. All three were among the top losers on the Nifty 50 during the session. 

Hyundai Motor India Bucks the Trend 

Hyundai Motor India was the exception to the broader weakness in auto stocks. 

The shares gained 1.2% to Rs 2,055, making Hyundai the only stock trading higher on the Nifty Auto index at the time. 

The company reported total September sales of 77,916 units, ahead of the CNBC-TV18 poll estimate of 74,000 units. Sales were also 10.8% higher than the 70,347 units reported in the corresponding period last year. 

Hyundai’s exports increased 10.4% during September, against expectations of a 10% decline. 

The broader market saw comparatively smaller losses. The Sensex was down 113 points, or 0.16%, while the Nifty 50 slipped 76 points, or 0.33%. 

With September sales numbers falling short of expectations at several automakers, the auto sector remained under pressure during Thursday’s session. Hyundai Motor India was the notable exception as its monthly sales exceeded estimates.