Auto Stocks Decline Despite Strong April Sales Data; Nifty Auto Index Drops Over 1%
TVS Motor, Hero MotoCorp lead auto stock decline despite strong sales data; Nifty Auto falls over 1%
Mint
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Despite reporting robust sales growth in April 2026, auto stocks experienced a decline, with the Nifty Auto index falling over 1%. Key players like TVS Motor Company and Hero MotoCorp saw share prices drop by 1% to 3%, while Bajaj Auto and Mahindra & Mahindra performed positively.
- 01Nifty Auto index fell over 1% amid selling pressure.
- 02TVS Motor and Hero MotoCorp were among the biggest losers, with shares down 1% to 3%.
- 03Domestic passenger vehicle dispatches rose by 25.4% YoY to 4,37,312 units in April 2026.
- 04Total two-wheeler sales increased by 28.4% YoY to 18,72,691 units.
- 05Three-wheeler dispatches surged 32.8% YoY to 65,668 units.
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On Thursday, auto stocks faced a downturn despite strong sales figures for April 2026, with the Nifty Auto index declining by over 1%. Major contributors to this decline included TVS Motor Company and Hero MotoCorp, whose shares fell between 1% and 3%. Other notable laggards were Eicher Motors, Ashok Leyland, Maruti Suzuki, and Tata Motors Passenger Vehicles. In contrast, Bajaj Auto and Mahindra & Mahindra saw their shares rise. According to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle dispatches increased by 25.4% year-on-year (YoY), totaling 4,37,312 units compared to 3,48,847 units in April 2025. Additionally, two-wheeler sales surged 28.4% YoY to 18,72,691 units, while three-wheeler dispatches rose by 32.8% YoY to 65,668 units.
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The decline in auto stocks may affect investor sentiment and could lead to fluctuations in the stock market, impacting ordinary investors and stakeholders in the automobile sector.
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