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Hero MotoCorp lags in August sales as auto stocks slide on West Asia
Commercial vehicle demand stood out in August, with Tata Motors CV sales up 49% and Ashok Leyland’s up 38%, even as investor sentiment cooled after West Asia conflict escalation pushed Nifty Auto more than 3% lower.
August auto sales showed mixed momentum, with commercial vehicles outperforming passenger segments. Tata Motors’ commercial vehicle sales rose 49% year on year, and Ashok Leyland’s increased 38%, a pattern cited as evidence of strong replacement demand.
Two wheeler results were also uneven. Hero MotoCorp’s domestic sales volume growth came in at 4% year on year, well below peers such as TVS Motor, whose domestic sales volume growth was 18%, and Bajaj Auto and Eicher Motors, which reported growth of 10% and 11% respectively.
The report also pointed to export disruptions affecting passenger vehicle makers, attributing part of the weakness to shipping. Maruti Suzuki said exports were impacted by a shortage of ships, with voyages taking a longer route around the Cape of Good Hope to skirt the West Asia conflict zone.
Despite generally strong volumes elsewhere, auto stocks fell after the West Asia conflict escalated, dragging the Nifty Auto index more than 3% lower. The article highlighted that investors reacted negatively to Hero MotoCorp’s weaker August performance and referenced additional factors such as uneven month to month domestic demand, including a sequential dip in Maruti’s domestic PV sales driven by a 17% decline in small cars.