Hyundai, Maruti, TVS shares rise amid 1% drop in benchmark indices

Auto stocks are edging higher on the stock exchanges today, despite a 1% drop in the Sensex and Nifty. Maruti Suzuki, Hyundai Motor India and TVS Motor Company are some of the auto stocks gaining today, while Bajaj Auto and Tata Motors have slipped nearly 3% on the NSE.

The gains come after the Union Budget 2025-26 introduced tax cuts for the middle class, exempting personal income tax for those earning below ₹12 lakh. This is expected to increase disposable incomes, boosting consumption and demand for automobiles.

Despite positive sentiment in auto stocks, Bajaj Auto and Tata Motors were in the red, with both seeing slight declines on the NSE today. Bajaj Auto shares opened at ₹9,155.60 and dropped 2.4%, reaching an intraday low of ₹8,927. Bajaj Auto saw a 9% year-on-year decline in domestic sales that dropped to 2.08 lakh from 2.30 lakh in the same month previous fiscal. As a result, despite a sharp 37% year-on-year rise in exports, overall sales including two-wheelers and commercial vehicles rose by 7%.

Tata Motors opened at ₹706.55 and fell 2.8%, touching an intraday low of ₹686.10. Both companies saw declines following the release of their January vehicle numbers. Tata Motors which released its January numbers on February 1 saw a 6.75% decline in its domestic & international market sales, which dropped to 80,304, from 86,125 units during the same month last year. This was on the back of a sharper 11% year-on-year decline in passenger vehicles sales, that dropped to 48,316 units in January this year.

Maruti Suzuki India opened at ₹12,990 and reached an intraday high of ₹13,461.20 on the NSE, up 4.2% from its previous close of ₹12,916.50. TVS Motor shares rose 3.9%, hitting an intraday high of ₹2,656.95 from ₹2,555.10 today. Hyundai shares also gained, reaching an intraday high of ₹1,811.90, a 3.5% rise from ₹1,750.45.

Maruti Suzuki, TVS Motor, and Hyundai also released their sales numbers over the weekend. Data from automakers on Saturday revealed a slight increase in India's overall car sales to dealers in January. Total domestic sales for Maruti Suzuki rose to 1.77 lakh units, up 4.4% from last year’s 1.70 lakh units. Exports also rose 13% from 23921 in January 2024 to 27100 units last month. This led to a 6.4% rise in total sales that reached 2.12 lakh units from 1.99 lakh units last year same month.

TVS Motor company’s January sales grew by 17% from last year, on the back of a strong 46% growth in international business, and a 10% rise in domestic sales. Hyundai, however, reported a decline in domestic sales, despite an increase in exports.