Weak July sales sour mood for auto stocks; Maruti Suzuki, Tata Motors, Eicher fall up to 3%

July auto sales were largely below the Street's estimates for most automakers.

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26 Aug, 2025 12:21

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Auto stocks faced selling pressure on August 2 as weak monthly sales numbers for July soured investor sentiment. Major automakers like Maruti Suzuki, Tata Motors, Eicher Motors, Bajaj Auto, and Mahindra & Mahindra slipped 1-3 percent, dragging the Nifty Auto index nearly 2 percent lower.

Sales for Eicher Motors' Royal Enfield motorcycles dropped 8 percent to 67,265 units on an annual basis, also missing Nomura's estimated 71,500 units. Tata Motors also recorded 11 percent drop in total sales for July to 71,996 units as compared to 80,633 units in the year-ago period. Similarly, sales of Maruti Suzuki's sales for July also declined over 5 percent year-on-year.

On the other hand, sales for M&M witnessed a marginal rise to 66,444 units, up from 66,124 units sold in the same time last year.

Brokerage firm Nomura noted that July data showed signs of weakness for CVs (Commercial Vehicles) and potential risks for PVs (Passenger Vehicles). However, two-wheeler growth remains healthy and tractors have shown some early promise of revival, the brokerage highlighted.

Nomura also believes that small car demand is unlikely to revive and SUVs (Sports Utility Vehicles) should continue gaining market share over the next few years.