- Company Highlights & Market Reaction
- What the Numbers Tell
- Bottomline
The stock market kicked off September on a strong note, with the Nifty Auto Index jumping 2.8% to emerge as one of the top sectoral gainers on Monday, September 1, 2025. The rally was powered by upbeat August sales numbers, led by major players like Bajaj Auto and Tata Motors. Auto stocks increased with Hero MotoCorp up 3.08%, Eicher Motors up 2.91%, and Escorts Kubota up 2.14%. Strong volumes in passenger vehicles and EVs reinforced investor confidence and contributed to resilient demand.
Let’s dive into the sales results and the factors fueling this robust demand.
Company Highlights & Market Reaction
Bajaj Auto
- Bajaj Auto sold 4,17,616 units in August, including two-wheelers and commercial vehicles, registering a 5% year-on-year growth.
- The real boost came from exports, which jumped 29%, signaling strong overseas demand. Backed by this performance, the stock gained 3.89% on September 1, 2025.
TVS Motors
- TVS Motor Company sold 509,536 units in August 2025, recording a strong 30% year-on-year growth. The growth was broad-based, with motorcycle sales rising 30%, scooters up 36%, and exports jumping 35%..
- EV sales inched up to 25,138 units, though supply challenges in components remain. Backed by this solid performance, on Monday the stock increased by 2.43%.
Tata Motors
- Tata Motors sold 73,178 units in August 2025, with domestic sales slipping by 2% year-on-year to 68,482 units.
- The highlight came from international markets, where commercial vehicle sales rose 77%, and passenger vehicle sales surged an exceptional 573%.
- EV sales grew 44% to 8,540 units, marking the company’s highest-ever monthly EV sales, driven by rising consumer confidence in green mobility. On September 1, supported by this momentum, the stock rose 3.17%
Mahindra & Mahindra
- Mahindra & Mahindra sold 75,901 vehicles in August 2025, facing flat overall growth, including exports. Domestic SUV sales were at 39,399 units, down 9% year-on-year, reflecting some pressure in the passenger vehicle segment.
- On the positive side, exports rose 16% to 3,548 units, while tractor sales surged 28% to 28,117 units, highlighting strong rural demand. Riding on these mixed but resilient numbers, on September 1, 2025, the stock increased by 3.63%.
What the Numbers Tell
- Consumer Spending is holding strong, with rising auto sales signaling healthy discretionary demand. Rural demand is gradually reviving with better monsoons, further supporting two-wheeler sales.
- Sustained momentum in passenger vehicles and EV adoption will directly support industrial output and manufacturing growth.
- With the festive period approaching, companies usually see a sales increase in September–October. Early signs of strong demand point towards a healthy Q2 FY26 for the auto sector.
- Announcement around the next wave of GST reforms, expected around Diwali, could bring tax cuts on cars. That would make vehicles more affordable and which may boost demand in the coming quarters.
Bottomline
August’s auto sales have given both the market and the economy a solid boost. Strong demand and the festive season ahead mean the momentum is likely to continue. If policy support like GST reforms comes through, the auto index may continue to rise along with the auto stocks, signaling strength in India’s broader economic growth.
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