Hero MotoCorp’s August sales growth lags peers as commercial vehicles outshine

In contrast, commercial vehicle demand showed robust performance. Tata Motors’ CV division recorded a 49% year-on-year rise in sales volumes, reaching 44,400 units. Ashok Leyland reported a 38% increase, selling 21,000 units. Both companies attributed the surge to replacement demand, citing an average fleet age of 9–10 years necessitating renewal.

Among passenger vehicle makers, Tata Motors led with 59% year-on-year growth in domestic sales. Mahindra & Mahindra followed with a 50% jump. Hyundai Motor India reported 24% domestic growth, though overall growth was constrained to 9% due to weak exports and supply-side issues, including longer shipping routes around the Cape of Good Hope to avoid West Asia.

Maruti Suzuki noted a 10% sequential decline in domestic passenger vehicle sales, primarily driven by a 17% drop in small car sales, while utility vehicle sales remained stable. The company explained that unusually low June volumes, due to price hike uncertainty, created a high base for July, affecting month-on-month comparisons.

Tractor sales showed divergence, with Escorts recording 19% year-on-year growth, significantly higher than Mahindra & Mahindra’s 5%, though Escorts operates from a lower base. Outlook for tractors remains tied to kharif crop output, water levels, and festive demand.

Despite strong volume trends in key segments, auto stocks declined on Wednesday, with the Nifty Auto index falling over 3%, amid overnight escalation in the West Asia conflict.

Looking ahead, industry expects improved dispatch trends in the coming months ahead of the festival season. Sustainability of growth will depend on performance against a high base in the second half of FY26, influenced by last year’s GST cuts.