Nifty Auto index extended its decline for third straight day on October 22 by falling over 3% with Tata Motors Passenger Vehicles, Bharat Forge, Samvardhana Motherson leading the losses by falling 2.3%, 2.1% and 2%, respectively.
At 2:20 pm on October 22, Nifty Auto index was trading 1% higher at 24,926.95.
"There has been significant pessimism among investors following retail sales trends that are reflected in Vahan data post-Dussehra. As per Vahan data, most OEMs are seen posting a double-digit decline in the 10 days of Navratri and Dussehra. However, we need to remember that these data points are not comparable at all," said JM Financial.
The overall industry outlook for FY27 remains positive, supported by healthy demand momentum, improving rural sentiment, premiumisation, rising EV adoption and new model launches. However, growth is likely to moderate in H2FY27 given the high base of H2FY26, while rising input costs, higher vehicle prices and uneven monsoon conditions could temper the pace of demand recovery, said Axis Securities.
Elevated inventory and intensifying competition remain key concerns for PV retail sales, said Choice Institutional Equities.