Indian auto stocks tumble as Bajaj and Mahindra miss sales forecasts

On Thursday, the Nifty Auto index fell to 25,507, its lowest point since May 18, 2026, after Bajaj Auto and Mahindra & Mahindra disclosed September sales that fell short of market expectations. Bajaj Auto’s shares slid 6% following a 5% year-on-year rise to 538,443 units, below the 585,000 units analysts had projected, while its domestic sales slipped 9% even as exports rose 32%. Mahindra & Mahindra reported a 15% increase in total vehicle sales to 114,874 units, but tractor sales dropped 21% to 52,100 units, missing the forecast of 62,000 units.

Hero MotoCorp and other manufacturers such as Ashok Leyland, Eicher Motors, Tata Motors Commercial Vehicle and TVS Motor Company also declined between 3% and 4%. In related news, the Ministry of Power released new Corporate Average Fuel Economy norms for 2027-28 to 2031-32, tightening fuel-consumption targets and expanding compliance options for electrified and alternative-fuel vehicles.