Stocks of Indian auto companies fell on Thursday as September data revealed acute softening of sales, just a month after passenger vehicles, three-wheelers, and two-wheelers hit a record high in August.
Shares of Bajaj Auto, one of India’s leading two-wheeler companies, declined over 8% after the company reported a 12% year-on-year drop in domestic sales in September. Shares of Indian automaker Mahindra & Mahindra also fell over 3% before recovering slightly.
In September, M&M sold 64,092 passenger cars, up 14% from a year ago. But this monthly sales growth was a far cry from the 50% year-on-year record in August.
Shares of Japanese automaker Maruti Suzuki, which sells the highest number of cars in India, were also down over 2%. It will release its September sales data later today.
Indian auto sales have been robust for nearly a year and have been cited by economists as a key indicator for the country’s sustained economic growth amid geopolitical headwinds.
Passenger vehicles, three-wheelers and two-wheelers recorded their highest ever sales of August this year, according to India’s auto industry body, Society of Indian Automobile Manufacturers.
In August 2026, passenger car sales grew 36.5% from a year ago to 439,309 units while two-wheeler sales rose 10.5% to over 2.0 million units, as per SIAM data.
“India’s automobile industry is passing through a robust growth phase,” Rajesh Menon, director general of SIAM, had said in a release in September.
He had underscored expectations that the September quarter sales will be “healthy,” backed by “festive demand.”
However, early data from auto companies has revealed that monthly sales softened in September.
Source: CNBC