Shares of major Indian auto companies declined sharply on Thursday following the release of September sales data, which showed a slowdown after record-breaking figures in August [1]. Bajaj Auto, a leading two-wheeler manufacturer, saw its stock drop over 8% after reporting a 12% year-on-year decrease in domestic sales for September [1]. Maruti Suzuki, the top car seller in India, experienced a share price decline of over 2%, with its September sales data scheduled for release later in the day [1].
Mahindra & Mahindra's shares also fell by more than 3% before partially recovering. The company reported sales of 64,092 passenger cars in September, representing a 14% year-on-year increase. However, this growth was significantly lower than the 50% year-on-year surge recorded in August [1].
The Indian auto sector had previously demonstrated robust performance, with August 2026 marking the highest ever sales for passenger vehicles, three-wheelers, and two-wheelers, according to the Society of Indian Automobile Manufacturers (SIAM) [1]. In August, passenger car sales rose 36.5% year-on-year to 439,309 units, and two-wheeler sales increased by 10.5% to over 2.0 million units [1]. Rajesh Menon, director general of SIAM, stated in September that the industry was in a 'robust growth phase' and anticipated 'healthy' sales for the September quarter, driven by festive demand [1].
Despite these positive expectations, early data from auto companies indicated that sales momentum softened in September, leading to negative market reactions [1].
CONCLUSION
Indian auto stocks faced significant declines as September sales growth slowed markedly from August's record highs. While the industry remains in a growth phase, the latest data has tempered market optimism, highlighting the sector's sensitivity to monthly sales trends.