Indian Auto Stocks Fall After September Sales Soften

Shares of leading Indian automotive companies declined on Thursday after September data revealed a softening in sales. This downturn followed a record-breaking August, which the Society of Indian Automobile Manufacturers reported as the highest ever sales period for passenger vehicles, three-wheelers, and two-wheelers, with passenger car sales growing 36.5% year-on-year.

Bajaj Auto saw its stock drop over 7% after reporting a 12% year-on-year decline in domestic sales for September. However, the company's total sales rose 5% due to a 34% increase in exports. In a forward-looking move, the company's Chief Financial Officer, Dinesh Thapar, announced plans to launch the firm's first electric motorcycle in FY28.

Other major players also faced losses. Mahindra & Mahindra shares fell over 3% as September passenger car sales growth of 14% failed to match the 50% year-on-year record set in August. Maruti Suzuki shares declined by more than 2% ahead of the release of its own September data.