Auto stocks slide up to 5% as sales see steep fall in August

At 10:00 am, the S&P BSE Auto Index was down 0.7 per cent or 109 points at 15,660, as compared to 0.93 per cent decline in the S&P BSE Sensex

Shares of automobile companies faced selling pressure in Tuesday's early morning trade, falling 2 to 5 per cent, after data showed that sales of four- and two-wheelers almost halved in August, compared to the equivalent month last year.

Among individual stocks, Maruti Suzuki's stock dipped 2 per cent, Mahindra & Mahindra and Eicher Motors slipped 3 per cent each, and Tata Motors slumped 5 per cent. On the other hand, Hero MotoCorp rose 1.9 per cent even though the automarker reported nearly 21 percent year-on-year (YoY) dip in sales to 543,406 units.

The numbers indicate the upcoming festive season may not be