Despite strong August sales data reflecting robust demand for passenger vehicles, auto stocks faced a notable drop. Maruti Suzuki and Tata Motors both reported impressive sales increases, while Hyundai Motor India celebrated its highest domestic sales ever in August. However, tractor sales diverged from this trend, as analysts expressed worries about future demand amidst the specter of price rises and increasing inflation.
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August auto sales stay strong, but brokerages remain selective on stocks.
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