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Informist, Friday, Aug. 1, 2025

MUMBAI – Shares of automobile companies and auto-part makers are expected to be in range next week but analysts and original equipment makers are optimistic about an improvement in demand as the festival season approaches. Investors also parsed wholesale sales data for July from different original equipment manufacturers, which was broadly muted but with outperformers. Corporate earnings are also in focus with major auto ancillary companies announcing their quarterly results next week.    

In terms of monthly sales to dealerships for July, two-wheeler makers fared better than other automobile companies which have reported the figures so far. TVS Motor Co. and Eicher Motors' motorcycle sales rose over 20%. Bajaj Auto's performance was rather tepid in July. Hero MotoCorp also posted an on-year rise in sales last month.

Among passenger vehicle makers, Tata Motors reported an on-year decline in sales for July, while Maruti Suzuki India's total sales rose slightly on year. On a month-on-month basis, Hyundai Motors' sales were muted. Mahindra and Mahindra posted a double-digit growth in its sales, driven by strong growth in utility vehicles segment. Tractor-maker Escorts Kubota posted a low single-digit growth.   

Lower sales have been plaguing the industry for many quarters. Analysts expect the sales to pick up in the coming quarters, at least in Oct-Mar on the back of the festival season. They are optimistic that the measures by the government in the form of tax relief and ample interest rate cut by the Reserve Bank of India will likely see a transmission in the next three months. This is expected to induce consumer spending, thereby increasing demand, he said.

On the earnings front, Hyundai Motors, Mahindra & Mahindra, TVS Motor Co., Maruti Suzuki India, and Eicher Motors, all posted better-than-expected net profit for the June quarter. However, the stocks did not see much of a surge as the near-term outlook on the supply chain and input costs perspective looks challenging. Many original equipment makers are looking for alternatives to rare earth magnets, as the supply of the latter has become increasingly difficult due to China's rigid curbs on exports. To add to these worries, regulatory measures and certain rules put forth to mandate safety such as anti-braking systems, six airbags, etc, will also shoot up input costs for original equipment manufacturers, forcing them to take price hikes to protect margins.

Even then, companies expect the second half of 2025-26 (Apr-Mar) to be better in terms of sales and demand improvement as the festival season kicks in. "We are hopeful that if Onam goes well, then Ganesh (Chaturthi, in September) and then later on Navratra, and fundamentally the monsoon is good... I am sure there is no reason why this festival should not be good," Maruti Suzuki's Executive Director Partho Banerjee said at a virtual press conference on Friday. Bosch, Escorts Kubota, and Sona BLW Precision Forgings are scheduled to report their results Monday.

On Friday, the Nifty Auto closed at 23410.95 points, down 1.6% on week. All but two-wheeler makers--TVS Motor, Eicher Motors, and Hero MotoCorp--closed lower for the week among the 15 Nifty Auto constituents. "Nifty Auto index has been consolidating in a broad range of 23000 to 24200 over the past few weeks, indicating indecision and a lack of clear trend direction," Ashish Sherigar, technical analyst at NVS Brokerage, said. "A breakout on either side of this range is expected to set the tone for the next major move. Until a breakout occurs, traders should anticipate range-bound action within the defined levels."

 TOP HEADLINES

* Maruti Suzuki July total production at 187,073 units, up nearly 1% on year
* Maruti Suzuki says banking on Onam to kickstart positive festival season
* Eicher Motors' India July CV despatches up 6.1% on year, exports up 32.5%
* Hero MotoCorp July sales rise 21% on year, highest growth in over a year
* Fall in PV sales volume pulls down Tata Motors' July total sales by 4% on yr
* Record scooter sales help TVS Motor Jul 2-wheeler sales growth hit 17-mo high
* Ashok Leyland vehicle sales in July up 8% on year at 15,064 units
* M&M's July auto despatches up nearly 20% YoY; CVs show sign of recovery
* Escorts Kubota July tractor sales rise 2.7%, Apr-Jul sales up 1.1%
* Bajaj Auto's Jul 2-wheeler sales lowest in 7 mos as domestic volumes decline
* M&M signs pact with Ideal Motors to sell entire stake in associate co
* Samvardhana Motherson to set up JV with Taiwanese co Macauto for components
* Analyst Concall: Affordability issue seen in 1st-time buyers - Maruti Suzuki
* Analyst Concall: Eicher Motors says rare earth magnets not a concern anymore
* Earnings Review: Eicher Motors Q1 consol PAT up 9% YoY, beats view
* Analyst Concall: TVS Motor plans INR 16.0 bln-INR 16.5 bln capex for FY26
* Great Eastern Apr-Jun consol PAT falls 37.9% YoY, sales fall 20.3%
* Earnings Review: Maruti Suzuki Q1 PAT, revenue grow faster than expectation
* Will raise up to 1 bln euros in 18 mos to fund Iveco buy, says Tata Motors
* Earnings Review: TVS Motor Q1 PAT beats view as revenue growth at 5 qtr-high
* Maruti Suzuki alters MoA to explore new business opportunities
* Tata Motors to buy Italy co Iveco for 3.8 bln euros, to exclude defence ops
* Analyst Concall: KPIT Tech bullish on deal flow from China, India clients
* Bharat Forge to establish new advanced ring mill for aerospace applications
* Analyst Concall: M&M says "comfortably placed" on rare earth magnets till Q4
* Analyst Concall: Demand to bounce back in Oct-Mar, InterGlobe Aviation says
* Earnings Review: InterGlobe's PAT below view, sales growth slowest in 4 yrs
* Analyst Concall: Hyundai Motor says "worst is behind" on India auto demand
* Earnings Review: M&M's PAT growth highest in 4 quarters, beats estimates
* Earnings Review:KPIT Tech Apr-Jun consol PAT dn 30% QoQ; sales up marginally
* Earnings Review: Birla Corp Q1 consol net jumps but misses Street view
* Earnings Review: Hyundai Motor revenue down more than expected on weak sales
* JBM Auto Apr-Jun consol PAT rises 10.2% on year to INR 368 mln
* M&M to release Jun quarter results Wed instead of Thu; co cites 'exigencies'
* Birla Corp Apr-Jun consol PAT up over 3-fold YoY at INR 1.2 billion
* PRESS: Tata Motors to buy Italian truck making company Iveco for $4.5 bln
* NCLT admits Catalyst Trusteeship insolvency plea against Blu-Smart Mobility
* Craftsman Automation Apr-Jun consol PAT rises 31% YoY to INR 696 million
* Govt, Ather Energy sign MoU to strengthen EV mfg, clean mobility ecosystem
* Earnings Review: Motherson Sumi Wiring Q1 PAT hit by higher expenses
* Earnings Review: Higher expenses pull down Mazagon Dock's Q1 PAT 35% YoY
* FADA meets RBI Malhotra, seeks better rate cut transmission to auto loans
* Great Eastern Shipping to buy Kamsarmax dry bulk carrier; to join fleet Q3
* ICRA ups InterGlobe Aviation's long-term bank facilities rating to 'AA'
* Sona BLW rejects Rani Kapur's claims of signature being taken under coercion

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Gopika Balasubramanium

Edited by Tanima Banerjee

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