Why major Indian auto stocks are trading in red today
What's the story
Major auto stocks, such as Maruti Suzuki, Hero MotoCorp, Eicher Motors, and Tata Motors, saw a dip in share prices after announcing their September automobile sales.
Eicher Motors' share price took the biggest hit with a decline of over 4%, while other companies' stocks dropped between 1% to 3%.
This slump affected the Nifty Auto index, which fell by over 1%, making it the top sectoral loser on the NSE.
Details
Mixed results in September auto sales
September's auto sales brought a mixed bag of outcomes, with passenger vehicle (PV) and tractor sales underperforming. However, the commercial vehicle (CV) sales surpassed expectations.
Domestic two-wheeler wholesales rose by 3% YoY, and utility vehicle demand stayed robust.
However, entry-level models for PVs continued to show weakness, leading to an overall growth of 4% YoY. In contrast, tractor volumes decreased by 11% YoY.
What Next?
Eicher Motors hit by motorcycle sales decline
Eicher Motors's share price dropped significantly after the company revealed a decline in motorcycle sales for September.
Royal Enfield, which is owned by Eicher Motors, saw motorcycle sales decrease by 4% YoY, while exports plummeted by 49% YoY.
On a positive note, Eicher Motors's total CV sales increased by 8.6% YoY last month. The company's stock is currently trading at Rs. 3,341.40 per share on the NSE (down 3.06%).
Insights
Other major auto companies' September sales
Maruti Suzuki reported a slight increase of 2.8% YoY in total wholesales last month. It is now trading at Rs. 10,384.80 per stock (down 2.13%).
Tata Motors experienced a 2% rise in total domestic vehicle sales, but its passenger vehicle sales were down by 6% YoY. It is trading at Rs. 621.20 (down 1.43%).
Hero MotoCorp registered a YoY growth of 3% with total sales of 536,499 units in September. It is trading at Rs. 3,026.35 (down 1.01%).