Hero MotoCorp shares fell 4% to ₹5,322 apiece on November 4, becoming the top loser on the Nifty Auto index, which declined 0.5%. The fall followed the company’s report of a 6.4% year-over-year (YoY) decline in total sales for October 2025.

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Domestic Sales Fall, Exports Rise Brokerage Commentary: Morgan Stanley and UBS Views

According to the company’s filing, total dispatches to dealers declined to 6,35,808 units in October from 6,79,091 units in the same month last year.

Domestic Sales Fall, Exports Rise

Hero MotoCorp’s domestic sales fell 8% YoY to 6,04,829 units compared with 6,57,403 units in October last year.

However, exports surged 43% YoY to 30,979 units, up from 21,688 units a year earlier. Despite the fall in dispatches, the company highlighted that retail sales were strong at 9.95 lakh units in October, supported by festive demand.

Hero MotoCorp said it remains confident about growth in the second half of FY26, citing a strong product lineup, robust domestic demand, and expanding international presence.

Also Read: Bharti Airtel Shares Rise After Strong Q2 FY26 Results

Brokerage Commentary: Morgan Stanley and UBS Views

Morgan Stanley said its volume estimates for Hero MotoCorp imply 16% YoY growth for the rest of FY26, suggesting recovery momentum ahead despite the October dip.

Meanwhile, UBS noted that tax cuts and the festive season boosted overall auto demand in October. Passenger vehicle sales rose 11% YoY, while two-wheeler sales surged 52% YoY during the period.

UBS also pointed out that premiumisation trends in the two-wheeler segment accelerated after GST cuts, with brands like Eicher Motors (Royal Enfield) and Honda gaining market share from Hero MotoCorp and Bajaj Auto.

Sector Snapshot

Hero MotoCorp October sales: 6.36 lakh units (–6.4% YoY)
Domestic sales: 6.05 lakh units (–8% YoY)
Exports: 30,979 units (+43% YoY)
Retail sales: 9.95 lakh units
Hero MotoCorp stock: Down 4% on November 4; up 33% in 2025 YTD
Rival Bajaj Auto: +4% YoY growth in October sales
Nifty Auto Index: +11% since GST cuts in August

Click here to explore: Hero Motor Crop

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ByPradeep Sangatramani

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Pradeep Sangatramani, founder and CEO of NiftyTrader, is an IIM Calcutta alumnus with a background in engineering. Passionate about the stock market from early on, he spent years studying its dynamics and working in roles focused on market analysis, trading tools, and financial data. Realising the challenges traders face in accessing user-friendly tools, he built NiftyTrader to offer data-driven, easy-to-use solutions. Committed to transparency and education, Pradeep actively shares insights through articles and webinars, aiming to empower traders at all levels.