Indian automobile stocks came under sharp selling pressure on Thursday, October 1, as investors reacted to September sales that fell short of expectations at some major manufacturers. Bajaj Auto was the biggest casualty, falling nearly 8%, while Mahindra & Mahindra, Maruti Suzuki, Eicher Motors and Tata Motors Passenger Vehicles also traded lower. Source: Moneycontrol
Hyundai Motor India moved against the broader trend after reporting record monthly sales, helping its shares gain while the Nifty Auto index remained under heavy pressure.
Why Did Auto Stocks Fall?
At around 11:08 am, the Nifty Auto index was down 3.15% at 25,465.80, making it the weakest major sectoral index at that point in the session. The Sensex was down 113 points, or 0.16%, while the Nifty 50 had lost 76 points, or 0.33%. Source: Moneycontrol market data
The main issue was not simply whether September sales increased year-on-year. Investors were also comparing the reported numbers with market expectations ahead of the festive season.
Foreign investor selling added pressure to the broader market. Reuters reported that foreign investors had withdrawn approximately $3.6 billion from Indian equities over five sessions, including $1.06 billion in the previous session. Source: Reuters
Bajaj Auto Falls Nearly 8%
Bajaj Auto shares fell nearly 8% to around ₹10,021 after September sales came below market expectations.
The company sold approximately 5.38 lakh vehicles, compared with a CNBC-TV18 poll estimate of 5.79 lakh units. Total sales were still 5% higher year-on-year. Source: Moneycontrol
Bajaj Auto's September numbers included:
Domestic sales: 2.94 lakh units, down 9% YoY
Exports: 2.43 lakh units, up 32%
Two-wheelers: 4.51 lakh units, up 5%
Commercial vehicles: 86,949 units, up 9%
Source: Bajaj Auto September sales coverage
The market reaction suggests that strong exports were not enough to offset concerns over weaker domestic volumes and the miss against analysts’ expectations.
Mahindra Shares Decline Despite Sales Growth
Mahindra & Mahindra shares fell about 2.6% to ₹2,874.50.
The automaker reported approximately 1.15 lakh vehicles sold during September, representing 15% year-on-year growth but coming slightly below the 1.17 lakh units expected in the cited market poll. Source: Moneycontrol
M&M's passenger vehicle business remained strong, with sales increasing 14% to 64,092 vehicles, up from 56,233 units a year earlier.
However, tractor sales fell sharply.
Total tractor volumes declined 21% year-on-year to 52,100 units, compared with 66,111 units in September last year. Source: Moneycontrol — M&M sales figures
Maruti, Eicher and Tata Motors Also Fall
Selling pressure extended across the automobile sector.
During the morning session:
Eicher Motors: down about 2.9%
Maruti Suzuki: down nearly 2.5%
Tata Motors Passenger Vehicles: down about 1.6%
Source: Moneycontrol stock moves
The declines came even as automobile manufacturers broadly reported higher September dispatches ahead of the festive season.
Reuters noted that Indian automakers typically raise dealership inventories and introduce discounts, financing offers and new products ahead of the peak festive buying period. Source: Reuters auto sales report
Hyundai Bucks the Trend With Record Sales
Hyundai Motor India was the standout performer.
Its shares rose about 1.2% to ₹2,055, making it the only Nifty Auto constituent trading higher at the time covered by the report. Source: Moneycontrol
Hyundai reported its highest-ever monthly sales of 77,916 vehicles, up 10.8% year-on-year.
The September breakdown was:
Domestic sales: 57,166 units, up 10.9%
Exports: 20,750 units, up 10.4%
Total sales: 77,916 units, up 10.8%
Source: Hyundai September sales data
The total was also above the approximately 74,000 vehicles expected in the market poll cited by Moneycontrol.
Tractor Sales Emerge as a Weak Spot
The tractor segment was one of the weaker parts of September’s auto data.
Along with M&M's 21% decline, Escorts Kubota reported sales of 15,214 units, down 16.7% from 18,267 units a year earlier. Source: Moneycontrol
Rural demand, monsoon conditions, agricultural activity and the comparison with last year's sales will remain important indicators for tractor manufacturers during the remainder of FY27.
Key September Auto Figures With Sources
Bajaj Auto
Total sales: 5.38 lakh, +5% YoY
Domestic: 2.94 lakh, -9%
Exports: 2.43 lakh, +32%
Mahindra & Mahindra
Total vehicle sales: around 1.15 lakh, +15%
Passenger vehicles: 64,092, +14%
Tractor sales: 52,100, -21%
Hyundai Motor India
Total sales: 77,916, +10.8%
Domestic: 57,166, +10.9%
Exports: 20,750, +10.4%
Market
Nifty Auto: -3.15% at 25,465.80 around 11:08 am
Bajaj Auto: nearly -8%
M&M: -2.6%
Maruti Suzuki: nearly -2.5%
Hyundai Motor India: +1.2%
Why September Sales Matter
September vehicle dispatches are closely watched because they arrive immediately before India's major festive buying period.
Automakers typically increase dealership inventory ahead of Navratri, Dussehra and Diwali, when vehicle purchases tend to rise.
That means October retail registrations will be especially important. Strong wholesales do not necessarily translate into equivalent consumer demand if vehicles remain with dealers.
For investors, the next question is whether festive retail purchases can justify the growth expectations reflected in auto-sector valuations.
What Investors Will Watch Next
Markets are likely to focus on October vehicle sales, retail registrations, festive discounts, rural demand, export momentum and the upcoming quarterly earnings season.
Bajaj Auto’s strong export growth, Mahindra’s SUV demand and Hyundai’s record September performance provide positive signals in individual areas, while weaker tractor and domestic two-wheeler figures highlight continued differences between segments.
The next few weeks should provide a clearer picture of whether September inventory building translates into sustained consumer demand.
FAQs
Why did Bajaj Auto shares fall?
Bajaj Auto fell nearly 8% after September sales of about 5.38 lakh units missed market expectations, while domestic volumes declined 9% year-on-year. Source
How many vehicles did Bajaj Auto sell in September 2026?
Bajaj Auto sold 538,443 vehicles, representing about 5% year-on-year growth. Source
Why did M&M shares decline despite higher sales?
M&M's total vehicle sales grew 15%, but they were slightly below expectations, while tractor sales dropped 21% year-on-year. Source
How many vehicles did Hyundai sell in September?
Hyundai Motor India sold a record 77,916 vehicles, including 57,166 domestic units and 20,750 exports. Source
Market prices mentioned above are intraday levels from October 1, 2026 and may change during the trading session. This article is informational and does not constitute investment advice.