World · India Bureau
Auto stocks slide as growth momentum cools; Eicher, Hero MotoCorp lead declines
The automotive sector index fell 2 percent, with two-wheeler and commercial vehicle makers bearing the brunt of selling pressure. While year-on-year growth remains robust, sequential momentum has begun to soften across the segment.
LSN India ·
India's automotive stocks came under pressure on Tuesday, with the Nifty Auto Index declining 2 percent as investors assessed mixed signals from the sector. Two-wheeler manufacturers Eicher Motors and Hero MotoCorp emerged as the heaviest losers during the session, reflecting broader caution in the four and two-wheeler segments.
Despite the near-term weakness, the automotive sector has maintained solid year-on-year growth momentum through August, with improvements registered across multiple segments and players, according to market analysts. The sector benefited from sustained demand recovery and production normalisation in the months following the monsoon season.
However, analysts at Emkay Global Markets noted a discernible moderation when comparing August's performance to July figures. The month-on-month softening suggests a temporary loss of traction even as annual comparisons remain favourable, indicating a potential plateau in the recent uptrend that has characterised the sector.
The pullback in auto stocks comes at a time when the broader market assesses the sustainability of recovery narratives across cyclical sectors. Investors remain focused on production capacity utilisation, supply chain normalisation, and demand indicators ahead of the festive season, which traditionally drives sales in the automotive industry.