Bajaj Auto shares crash 9%, M&M hits 52-week low after September auto sales data. What went wrong?

Shares of Bajaj Auto and Mahindra & Mahindra (M&M) crashed up to 9% on Thursday after the companies' September auto sales figures failed to meet expectations despite the low base effect.

Bajaj Auto shares declined nearly 9% to Rs 9,952 apiece on the NSE, hitting their lowest level in nearly three months. M&M shares, meanwhile, fell around 4% to Rs 2,843.70 apiece, touching a fresh 52-week low.

While the overall sales numbers grew slightly, it was driven by a low base effect as the sales numbers were low in September last year as many customers deferred their purchases ahead of the government’s GST reforms that took effect late during the month.

Bajaj Auto September sales data

Bajaj Auto reported a 12% year-on-year (YoY) decline in domestic two-wheeler sales to below 2.4 lakh units in September, compared with 2.73 lakh units in the same month last year, despite the low base effect. Its overall two-wheeler sales however rose 5% YoY to 4.51 lakh units, driven by a 34% increase in exports to 2.12 lakh units.

Commercial vehicle sales grew 9% YoY to 86,949 units. Bajaj Auto's overall domestic sales across all categories declined 9% YoY to 2.94 lakh units in September. However, a 32% surge in exports lifted total sales by 5% during the month.

In comparison, Bajaj Auto’s August sales data showed a sharper surge than September, despite not being boosted by the low base effect. The two-wheeler maker’s total sales grew 28% YoY to nearly 5.35 lakh units in August, higher than 5.38 lakh units sales recorded in September.

In the first six months of FY27, Bajaj Auto sold 29.87 lakh units, marking a 24% increase from 24.05 lakh units in the corresponding period of the previous financial year. The growth was driven largely by a 47% jump in exports, while domestic sales grew by just 7% YoY.

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M&M September sales data

Mahindra & Mahindra (M&M) reported a 14% year-on-year (YoY) increase in domestic passenger vehicle sales to 64,092 units in September, compared with 56,233 units in the same month last year. For the April-September period of FY27, passenger vehicle sales rose 20% YoY to 3.58 lakh units.

The company's total exports, however, declined 7% YoY to 4,019 units in September. Despite the monthly dip, exports remained up 48% YoY for the April-September period of the current financial year. Its overall sales in September increased 15% YoY to 1.15 lakh units.

Notably, M&M’s 15% YoY growth in auto sales from a low base of September 2025 data comes a month after the company reported a sharp 42% YoY surge in August auto sales to 1.08 lakh units, with a strong 50% YoY jump in domestic SUV sales.

Also read |Auto stocks: Festive demand gets a low-base boost; can earnings justify valuations?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.