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Informist, Saturday, Sept. 20, 2025

MUMBAI – Emkay Global Financial Services expects volumes in the passenger vehicles segment to grow at 20% in the December quarter and in the high single-digit in 2025-26 (Apr-Mar). The growth will be aided by improved clarity in pricing for models following the cuts in the goods and service tax and upcoming festival season, the brokerage said in a report Friday. 

"After 1.5-2.0 years of subdued growth, the tide is turning for PVs (passenger vehicles), with 10% YoY retail growth in Aug-25 (in the dealer's region), 15-20% YoY growth in bookings across segments in Sep-25MTD (despite festive mismatch)," the brokerage said. 

Maruti Suzuki India Ltd. has undertaken strategic and targeted price reductions in the entry-level variants for hatchbacks to help revive the small car segment, the brokerage said. "Initial response for Victoris has been positive; dispatches have begun in Sept-25, with deliveries slated to start in Oct-25, and volumes expected to range at 5-7k units/month," it said. Dealers are well prepared for the upcoming festival season, with ample network inventory in place, the report said. 

Demand for electric two-wheelers is expected to sustain despite a reduction in price gap compared with vehicles in the internal combustible engine segment, as customers are willing to pay a premium for differentiated offerings. Improving cost curves, declining product prices, and a broader industry product portfolio continue to strengthen growth in the category. "Entry of larger players such as Suzuki and HMSI (Honda Motorcycle & Scooter India) into the EV space will be instrumental in sustaining momentum and expanding the category," the brokerage said. 

Emkay also sees an uptick in demand for commercial vehicles due to lower equated monthly instalments on the back of rate cuts, reduced margin-money requirements, and vehicle price corrections. Electric adoption is the strongest in small commercial vehicles and buses, the brokerage said. "With subsidy and pricing uncertainties gradually settling, the outlook for these segments is becoming more constructive," it added. While truck volumes remain subdued, the segment is seeing a structural shift toward higher-capacity vehicles which enable fleet operators to generate higher revenue from the same fleet base by carrying greater loads and improving asset utilisation.  End

Reported by Akash Mandal

Edited by Subhojit Sarkar

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