Auto Stocks Decline on Weak November Retail Sales; Hyundai, Tata Motors Among Top Losers

GG News Bureau
New Delhi, 9th Dec. Auto stocks witnessed a downturn on Monday following the release of retail figures for November, which highlighted a year-on-year decline in passenger and commercial vehicle sales. The Nifty Auto index fell 0.44 percent, mirroring the cautious market sentiment.

Hyundai Motor’s share price dropped by 1.2 percent to ₹1,838, leading losses among major auto players, while Tata Motors slipped 0.7 percent to ₹811. Maruti Suzuki and Mahindra & Mahindra (M&M) also faced declines of 0.4 percent and 0.3 percent, respectively, due to weak passenger vehicle sales and high inventory levels.

Broader markets also traded in the red, with the BSE Sensex falling by 275 points or 0.35 percent to 81,434, and the NSE Nifty dipping below 24,600.

The Federation of Automobile Dealers Associations (FADA) reported a 13.7 percent drop in passenger vehicle registrations in November, amounting to 3.22 lakh units. Commercial vehicle sales decreased by 6.1 percent, totaling 81,967 units. The dip reflects uneven demand recovery in the sector, influenced by subdued wedding season demand, spillover effects from October’s Diwali festivities, and weak rural sales.

FADA President CS Vigneshwar noted that inventory levels in the passenger vehicle segment remain elevated at 65-68 days, creating challenges for dealers. He added that new product launches and improved rural demand will be critical for boosting investor sentiment and market performance.

The sector faces macroeconomic headwinds, and industry experts emphasize that a revival will hinge on robust demand during the wedding season and strategic innovations in vehicle offerings.