Shares of automobile and auto parts companies Hero Motors, SML Mahindra and Wheels India were locked at the 10 per cent lower circuit on the BSE in Wednesday’s intraday deals due to overall weakness in the equity market. In comparison, the BSE Sensex was down 0.76 per cent at 73,293.54 at 02:28 PM.

Among individual stocks, Hero Motors was locked at the 10 per cent lower circuit at ₹122.70 on the BSE. A combined 21.56 million shares changed hands and there were pending sell orders for 2.5 million shares on the NSE and BSE.

With Wednesday’s decline, the market price of Hero Motors dropped 31 per cent from its post listing high of ₹179 on October 5, 2026. The stock hit a 52-week low of ₹80.50 on listing day, i.e. September 23, 2026. However, currently, Hero Motors quoted 46 per cent higher over its issue price of ₹84 per share.

Hero Motors manufactures and supplies auto components including gearboxes, continuous variable transmission and other components for the two-wheeler and electric bicycles segments.

Hero Motors’ revenue is expected to grow steadily over the medium-term, supported by mid-teen growth in the powertrain segment and steady performance of the alloy & metal (A&M) business. The powertrain segment’s share in the overall revenue mix is expected to increase further over the medium term, Crisil Ratings said.

Growth over the medium term is expected to be supported by new product additions, scale-up of subsidiaries and increasing contribution from the powertrain business. The company also expects a significant rise in revenue from the electric mobility segment over the medium-term, the rating agency added.

However, Hero Motors’ business is derived from original equipment manufacturers (OEMs). Demand in the sector is inherently cyclical and influenced by several external factors, including consumer disposable income, rural and urban consumption trends, credit availability, fuel prices, regulatory changes and overall economic conditions. Consequently, any slowdown in industry volume or adverse macroeconomic developments could affect order flow and growth prospects. 

Although the company has made steady progress in diversifying its customer base across geographies and product segments, customer concentration remains moderate, with the top five customers accounting for 60–65 per cent of revenue.

Meanwhile, the share price of SML Mahindra was locked at the 10 per cent lower circuit at ₹5,514.75 on the BSE. The stock hit a record high of ₹6,908.80 on September 28, 2026. It hit a 52-week low of ₹2,700.15 on October 21, 2025.

The company is engaged in the manufacturing and sale of commercial vehicles such as buses, trucks, and special application vehicles. Its customer base comprises fleet owners, educational institutions, offices, transporters, government agencies, and others across domestic and international markets.

For the second quarter (July to September 2026) of the financial year 2026-27 (Q2FY27), SML Mahindra reported a 44 per cent year-on-year (YoY) decline in profit after tax (PAT) at ₹11.70 crore, due to higher raw material cost. Revenue from operations of the company grew 20.6 per cent YoY at ₹669.79 crore, while the cost of raw materials consumed rose 16.8 per cent at ₹523.34 crore.

Share price of Wheels India too was locked at the 10 per cent lower circuit at ₹2,194.30 on the BSE. The stock hit a 52-week high of ₹2,511.50 on Monday, October 19, 2026. It hit a 52-week low of ₹705.05 on January 27, 2026.

The board of directors of Wheels India approved the preferential issue on a private-placement basis for an aggregate consideration of ₹180 crore on August 19, 2026. The board approved the issue of “an aggregate of up to 1.269 million equity shares having face value of ₹10 each at an issue price of ₹1,418 per equity share for cash consideration aggregating up to ₹180 crore,” the company said in a stock exchange filing. The allottees include TSF Investments, Srivats Ram, Nivedita Ram and Gita Ram.