TVS Motor, Hero MotoCorp lead auto stock decline despite strong sales data; Nifty Auto falls over 1%
Among the top losers in the Nifty Auto index were TVS Motor Company, Hero MotoCorp, Eicher Motors, and Ashok Leyland, with shares falling between 1% and 3%. Other laggards included Maruti Suzuki and Tata Motors Passenger Vehicles shares.
Auto stocks traded lower on Thursday amid broad-based selling pressure, with the Nifty Auto index declining more than 1%, despite strong automobile sales data reported for April.
Among the top losers in the Nifty Auto index were TVS Motor Company, Hero MotoCorp, Eicher Motors, and Ashok Leyland, with shares falling between 1% and 3%. Other laggards included Maruti Suzuki and Tata Motors Passenger Vehicles shares.
In contrast, shares of Bajaj Auto and Mahindra & Mahindra traded in positive territory.
Quick answers to key questions
Auto stocks experienced a decline on Thursday due to broad-based selling pressure in the market, even though automobile sales data for April showed strong year-on-year growth across various segments like passenger vehicles, two-wheelers, and three-wheelers.
In April, domestic passenger vehicle dispatches to dealers rose by 25.4% year-on-year, and total two-wheeler sales increased by 28.4% year-on-year.
TVS Motor reported its best-ever financial performance for the fiscal year, with consolidated profit jumping by over half to ₹3,524 crore. The company sold nearly 5.9 million vehicles, a quarter more than the previous year.
TVS Motor expects to outpace industry growth again this fiscal year, despite rising input costs and supply-chain disruptions. They are aiming to raise production capacity by 1.5 million units and have a capital expenditure guidance of ₹3,500 crore for research and development and capacity expansion.
Tata Motors reported a massive 69.56% year-on-year jump in standalone profit to ₹2,406 crore for Q4 FY26. Quarterly revenue grew by 22% year-on-year to ₹24,452 crore, with EBITDA up 35% year-on-year.
Auto Sales in April
According to industry body Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle dispatches from manufacturers to dealers rose 25.4% year-on-year (YoY) to 4,37,312 units in April 2026, compared with 3,48,847 units in April 2025, kicking off the new fiscal on a strong note by carrying forward the demand momentum after GST rate cut last year.
SIAM said that the auto industry has been witnessing good demand despite concerns of high commodity prices emanating from the West Asia war.
In the PV segment, Utility Vehicles drove the volume growth, with 21.5% YoY surge at 2,44,280 units as compared to 2,01,062 units in April last year.
Passenger car dispatches also grew by 32.7% at 1,20,945 units last month from 91,148 units, YoY.
Total two-wheeler sales rose 28.4% to 18,72,691 units from 14,58,784 units in April last year, SIAM said.
Motorcycle sales in April 2026 increased 30.6% to 11,38,452 units from 8,71,666 units, YoY. Similarly, scooter sales grew by 26.2% YoY to 6,91,993 units last month.
Three-wheeler dispatches to dealers rose 32.8% to 65,668 units as against 49,441 units in the year-ago period.
Overall vehicle wholesales across categories in April grew by 27.9 per cent at 23,16,671 units as compared to 18,11,876 units in the same month last year, SIAM said.
“Continuing with the momentum of the second half of FY 2025-26, the first month of FY 2026-27, posted high double-digit growth in passenger vehicles, three-Wheelers and two-wheelers,” said Rajesh Menon, Director General, SIAM.
Though there are concerns of high commodity prices emanating from the disruptions in West Asia, industry has been witnessing good demand, he added.
(With inputs from PTI)
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