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Informist, Friday, Dec. 5, 2025

MUMBAI – Analysts are bullish on automobile stocks with earnings growth in the December quarter expected to be robust. Some analysts said automobile companies had already surprised them with robust volume growth in November. The Reserve Bank of India cutting the policy repo rate by 25 basis points is seen giving the sector a boost with loans set to become more affordable. The repo rate, now at 5.25%, was at 6.50% a year ago. 

Lower interest rates help automobile companies to improve their sales. With the cut in goods and services tax rates in September and huge discounts by the companies having already improved volume growth, the rate cut is exciting, they said.

Investors will now turn their attention to the November sales data, due to be released next week by the Federation of Automobile Dealers Associations. While most analysts do not track the data, preferring to look at wholesale volumes to gauge volume growth, the federation's data offer insights into the trend in retail sales.

Analysts said investors will also watch whether any automobile company announces price increases towards the end of the year. Some said the chances of prices being raised are low, given that companies have been offering huge discounts. An increase in prices could also sour consumer sentiment, they said.

BofA Securities expects volume growth in passenger vehicles and tractors to be strong the next 2-3 years. The broking firm is positive on sales of commercial vehicles as well as of passenger vehicles. "We see a number of structural drivers at play for tractors in addition to good monsoons and sentiment boost due to GST rate cut," it said.

"Festive growth has been pretty strong for PVs (passenger vehicles) and we note that PV retail volume growth pre-GST was low single digits but is now tracking 9%," the firm said. Moreover, it said, the retail trend "hasn't fallen off a cliff" after the end of the festival season. This, the brokerage said, confirms its view that the impact of the GST cut would not be limited to the festive period and bodes well for the sector's recovery over the next 2-3 years.

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* Adani Ports, Motherson group in pact to export automobiles from Dighi Port
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* M&M's Mauritius arm sells 3.6% stake in CIE Automotive SA for 119 mln euros
* NCLT admits Reliance BP Mobility's insolvency plea against Blu-Smart Fleet
* ZF Commercial Vehicle gets business nomination from Indian E-Mobility CV OEM
* Maruti Suzuki to be India's leading EV producer 2026, says senior executive
* Maruti Suzuki eyes 100,000 charging points by 2030 as it enters EV segment
* Robust demand adds zing to November automobile sales; exports zoom
* Rise in Hero MotoCorp Nov 2-wheeler despatches overcomes Oct YoY fall
* Force Motors Nov total sales up 53% on year, domestic sales rise 59%
* Aftermarket segment share in total revenue 13-14%, says Uno Minda CFO Bohra
* Eicher Motors CV wholesale sales at 7,652 units in Nov, up 37.3% on year
* Tata Motors Nov CV sales rise 29% on year to 35,539 units; exports up 92%
* Maruti Suzuki sales in Nov touch all-time high of 229,021 units, up 26% YoY
* Eicher motorcycle sales up 22% YoY at 100,670 units, exports up 2% in Nov
* Hyundai Motor reports 9% on-year sales volume growth in November
* Tata Motors PV Nov despatches up 26% YoY at 59,199 units
* Ola Electric launches feature to schedule service appointment on app
* TVS Motor reports 30% on-year growth in total sales to 519,508 units in Nov
* Ashok Leyland reports 29% on year growth in total Nov sales at 18,272 units
* Uno Minda to buy entire 49.9% stake held by JV Buehler Motor in subsidiary
* M&M's despatches rise 19% on year in Nov to 92,670 units, exports up 5%
* Escorts Kubota Nov total tractor sales up 18% YoY to 10,580 units
* Suzuki Motor Gujarat's merger with Maruti Suzuki India takes effect
* Exports, 2-wheelers drive Bajaj Auto Nov total sales up 8% to 453,273 units
* M&M arm acquires Mahindra Homes from JV partner Actis Mahi for INR 864 mln
 

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

End

Reported by Gopika Balasubramanium

Edited by Rajeev Pai

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