URL copied to clipboard

Trending News

Nifty Auto Index Slumps 7.7% as TVS, Bajaj Auto, and Eicher Motors Lead Decline – Find Out What’s Causing the Shocking Drop!

The Nifty Auto index dropped 7.7% over five sessions, with TVS leading the decline at over 11%. Bajaj Auto, Eicher Motors, and Samvardhana Motherson International also saw significant losses during this period.
Nifty Auto Index Slumps 7.7% as TVS, Bajaj Auto, and Eicher Motors Lead Decline – Find Out What’s Causing the Shocking Drop!

Indian auto stocks have been among the hardest hit by the recent market sell-off, driven by rising tensions between Iran and Israel. Additionally, a slowdown in September auto sales and a weak outlook from global car manufacturers have added pressure. As a result, the Nifty Auto index declined for the fifth consecutive session, dropping 1.50% to 25,544, marking a 7.7% fall from its peak of 27,696 on September 27.

Alice Blue Image

Also Read: Ratan Tata Addresses Health Rumors: Routine Check-Ups, No Worries!

TVS shares have been the worst performers during this period, falling 11.3%, followed by Bajaj Auto and Eicher Motors, both down 10%. Hero MotoCorp and Samvardhana Motherson International also saw sharp declines, losing 8% and 10%, respectively. Maruti Suzuki shares dropped 9%, while Ashok Leyland, MRF, Tata Motors, Bharat Forge, Mahindra & Mahindra, and Bosch recorded losses between 5% and 10%.

According to the Federation of Automobile Dealers Association (FADA), automobile sales fell 9.26% year-on-year (YoY) in September, due to weak consumer demand. The 2-wheeler segment saw a 10% month-on-month (MoM) and 8.5% YoY decline, impacted by low consumer sentiment and seasonal factors.

Also Read Q2 Earnings to Launch; Exciting Results Ahead from TCS, IREDA, and DMart – Check Out the Dates!

Passenger vehicle sales dropped 10.8% MoM and 18.81% YoY, with rising inventories and increased discounts yet to boost sales. Investor concerns about shrinking profit margins are growing as manufacturers struggle to clear stock.

This slowdown is not limited to India, with global giants like Volkswagen, Mercedes-Benz, and BMW adjusting their sales forecasts for 2024, citing similar challenges.

Loading
Read More News