Auto stocks, including Bajaj Auto, Hero MotoCorp, Maruti, Eicher Motors, and M&M, saw significant declines in early Thursday trade.

As the first major two-wheeler maker to release its Q2 results, Bajaj Auto’s projections have set a cautious tone for the broader auto industry

In Short

• Bajaj Auto shares plunged 10%, dragging down major auto stocks
• Hero MotoCorp, Eicher Motors and Maruti Suzuki also see significant stock declines
• Festive season motorcycle sales forecast disappoints, affecting investor sentiment

Shares of major auto companies, including Bajaj Auto, Hero MotoCorp, and Eicher Motors, tumbled in early trade on Thursday, following Bajaj Auto’s release of its Q2FY25 financial results. The two-wheeler giant’s weaker-than-expected sales outlook for the crucial festive season has rattled the market, dragging down the broader auto sector.

By 10:39 am, Bajaj auto shares had plunged 10.39% to rs 10410.45 marking their steepest decline since March 2020. The company’s disappointing sales projections for the upcoming festive period triggered a wave of concern among investors, casting a shadow over other auto stocks as well.

In an analyst call on Wednesday, Bajaj Auto’s Executive Director, Rakesh Sharma, revealed that motorcycle sales for the October-November festive season are expected to rise by only 1%-2%, far below the industry’s expectations of 5%-6% growth

In an analyst call on Wednesday, Bajaj Auto’s Executive Director, Rakesh Sharma, revealed that motorcycle sales for the October-November festive season are expected to rise by only 1%-2%, far below the industry’s expectations of 5%-6% growth

Carmakers weren’t spared either, with shares of Maruti Suzuki India dropping 2.01% to Rs 12,125, and Mahindra & Mahindra (M&M) declining 2.49% to Rs 2,989.15. The ripple effect across the auto sector reflects broader concerns about a potential slowdown in consumer demand during the festive season, typically a time of strong sales for automakers

Despite Bajaj Auto reporting solid profit growth and meeting margin expectations, analysts noted that the stock had been trading at high valuations, with limited room for upside. The company’s cautious festive season outlook has added to the market’s concern, prompting a sell-off in both two-wheeler and four-wheeler stocks.

As the first major two-wheeler maker to release its Q2 results, Bajaj Auto’s projections have set a cautious tone for the broader auto industry. They signal that automakers may face a challenging period ahead as they navigate rising costs and subdued consumer sentiment.

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