Eicher Motors, Hero MotoCorp Fall Up To 6%; Why Auto Stocks Came Under Pressure

Shares of automobile heavyweights Eicher Motors and Hero MotoCorp fell sharply on Wednesday, declining as much as 6 percent, amid selling pressure triggered by a combination of macroeconomic and industry-specific factors.

Eicher Motors shares settled at Rs 7,689 on the NSE, down 3.53 percent, while Hero MotoCorp closed at Rs 5,280, lower by 4.95 percent.

Why Auto Stocks Came Under Pressure

According to Mayank Jain, Market Analyst at Share.Market by PhonePe, the sudden selling pressure across automobile heavyweights was driven by several factors.

Rising global crude oil prices have increased concerns over fuel costs and freight expenses across the automotive supply chain. Supply-chain and logistics frictions have also created localised delivery bottlenecks.

The weakness came alongside the release of August vehicle volume data. While domestic demand remained resilient, a sharp decline in export dispatches and modest channel-filling ahead of the festive season contributed to profit booking after the stocks' recent multi-month rallies.

Eicher Motors Outlook

Eicher Motors witnessed a sharp pullback after facing technical resistance around the Rs 8,200 level.

Jain said the stock broke below its short-term 20-day moving average of Rs 8,008.1 and was testing its 50-day moving average at Rs 7,740.2 as an immediate support level.

A sustained break below this zone could open the way towards the 200-day moving average at Rs 7,365.7, which remains a key long-term support.

Despite the recent decline, the stock's broader long-term trend remains positive. Jain expects the stock could consolidate in the Rs 7,365-7,740 range rather than immediately reversing its broader trend.

Investors are likely to watch whether buying interest emerges around these moving-average support levels before assessing the possibility of a renewed uptrend.

Hero MotoCorp Outlook

Hero MotoCorp also faced heavy selling after encountering resistance near the Rs 6,000 level.

The stock fell below its 20-day moving average of Rs 5,676.3 and 200-day moving average of Rs 5,419. It was trading around its 50-day moving average of Rs 5,293.7.

Jain said the breach of the 200-day moving average points to heightened short-term volatility and active distribution.

With the stock having formed a lower peak compared with its late-2025 highs, the near-term setup favours sideways movement between the Rs 5,000 support level and Rs 5,500 resistance zone.

Investors will closely track the Rs 4,800-5,000 support band to assess whether the stock can stabilise before making another attempt to move higher.