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Informist, Tuesday, Dec. 2, 2025

 

HYDERABAD – Automobile sector despatches saw strong growth momentum in November across passenger vehicles, two-wheelers, commercial vehicles, and farm equipment, led by post-festival spillover demand, the winter wedding season demand, and improved affordability following the cut in goods and services tax, analysts said. Most automobile majors reported double-digit growth in despatches in November. Healthy export growth gave the sector a further boost, they said.

 

Medium and heavy commercial vehicles and tractors led the sector's performance, with 31.3% and 29% year-on-year growth, respectively, in November, brokerage Nirmal Bang Equities Pvt. Ltd. said in a note. Light commercial vehicles, two-wheelers, and four-wheelers continued the strong growth momentum and were up, respectively, by 23.4%, 20.4%, and 17.8% year-on-year. Demand for replacing aged trucks boosted sales in the medium and heavy commercial vehicles segment, according to Nomura Financial Advisory and Securities (India) Pvt. Ltd. Sales in the passenger vehicles segment benefited from a backlog of festive bookings, increased number of dates considered auspicious for marriage, and channel re-filling, Nomura said.

 

Wholesale sales of commercial vehicles grew strongly on year, reflecting increased fleet replacement demand and a pickup in freight movement after a subdued first half of the financial year 2025-26 (Apr-Mar), Nirmal Bang said. Companies such as Ashok Leyland Ltd. reported a 29% year-on-year rise in wholesale sales, supported by a 32% jump in sales of domestic commercial vehicles and steady momentum across medium and heavy commercial vehicles and light commercial vehicles.

 

Mahindra & Mahindra Ltd.'s light commercial vehicle sales rose 20.4% on year, reinforcing the company's leadership in the segment, while Tata Motors Ltd. displayed broad-based strength with sales of medium and heavy commercial vehicles up 30% on year and light commercial vehicles up 19% on year.

 

Tractor sales recorded healthy year-on-year growth in November, supported by improving rural sentiment and better affordability following the GST rate cuts, Nirmal Bang said. Mahindra & Mahindra extended its lead with strong double-digit performance in both domestic sales, up 33% on year, and exports, up 9% on year. Escorts Kubota Ltd. posted a solid increase as well, according to Nirmal Bang. Nomura said tractor segment sales volumes were up 29% on year, ahead of its estimates of 11% for November.

 

Two-wheeler demand stayed firm in November, supported by post-festival season buying, wedding season demand, improved rural liquidity, and improved affordability following the GST cuts, Nirmal Bang said. Exports also remained strong, the broking firm added.

 

Despatches of Eicher Motors Ltd.'s Royal Enfield motorcyles grew 22.4% on year, driven by 25.2% growth in domestic sales. Royal Enfield's exports inched up only 2.4%. TVS Motor Co. Ltd. showed broad-based strength with motorcycle sales up 34.4% and scooter sales up 27%. The company's exports surged 52% and domestic volumes rose 20%. Hero MotoCorp Ltd. delivered 31% year-on-year growth, with motorcycle sales up 26.6% and scooter sales soaring 92.5%. The company's domestic sales grew 29.7% and exports shot up 70%.

 

Bajaj Auto Ltd. posted 3.2% year-on-year growth as stronger exports offset a 0.5?cline in domestic sales volume. Electric vehicle demand remained steady but domestic motorcycle sales were relatively soft. Overall, a mix of rural recovery, GST-led affordability, and resilient export demand kept the two-wheeler segment on a strong footing heading into the second half of the fiscal year.

 

PV DESPATCHES

Passenger vehicle makers reported strong sales in November, for the same reasons as other classes of vehicles and helped also by improving economic sentiment in rural areas. Companies such as Maruti Suzuki India Ltd., Mahindra & Mahindra and Tata Motors Passenger Vehicles Ltd. posted high double-digit year-on-year growth, while Hyundai Motor India Ltd. delivered steady single-digit gains.

 

M&M maintained its momentum with 22% year-on-year growth on the back of the refreshed Thar and Bolero lineups. Demand for its electric models, including the XEV 9S and BE 6 Formula E edition, remained strong, according to Nirmal Bang.

 

Tata Motors Passenger Vehicles also delivered 22% year-on-year growth, the third consecutive month of double-digit expansion, driven by sport utility vehicles and record volumes of the company's electric vehicles and vehicles powered by compressed natural gas, with growth visibility improving ahead of the start of Sierra deliveries in January, Nirmal Bang said.

 

Maruti Suzuki reported broad-based domestic growth of 26% year-on-year, with the mini segment returning to positive territory for the first time in 2025, supported by improved affordability and discounts. The launch of the Victoris continued to lift utility vehicle sales while exports outpaced domestic growth on rising eVitara contribution. Hyundai Motor posted a moderate 4% year-on-year rise in domestic sales, backed by its sport utility vehicle lineup and the new Venue, even as exports continued to support the company's overall volumes.

 

In the electrical two-wheeler space, TVS Motor Co. reclaimed its numero uno position, selling 30,300 units and capturing 25.9% market share, Nomura said. Bajaj Auto, which makes the e-Chetak, dropped to second place with a market share of 21.8%. Ather Energy Ltd. occupied the third spot for the month. Hero MotoCorp stood fourth with a market share of 10.4%. Ola Electric Mobility dropped to fifth place as the first mover continued to lose market share. The company's market share now stands at 7.2%.

 

OUTLOOK POSITIVE

The analysts expect improving fleet profitability, construction and infrastructure activity, and supportive real-estate demand aided by lower rates to sustain the recovery in the heavy commercial vehicles segment in the second half of FY26. Nirmal Bang has projected commercial vehicles volume growth for FY26 at 5-7%.

 

The brokerage expects two-wheeler segment volumes for FY26 to grow 8-10% and passenger vehicle segment volumes to see 6-8% growth led by new launches, improved affordability, and strong rural demand. Nomura said the booking pipeline and lower-than-usual inventory levels could further support higher dispatches in December. Nomura said medium-term growth in sport utility vehicle sales is likely to outpace demand for hatchbacks and sedans.

 

According to Nirmal Bang, the fundamentals remain favourable for the tractor segment. Above-normal monsoons, healthy reservoir levels, higher minimum support price for major crops, and smooth rabi sowing have bolstered farmer confidence, the broking firm said. Pre-buying ahead of April, when new vehicular emission norms come into force, may lift volumes further in Oct-Mar, reinforcing the demand outlook for the segment. The firm revised its tractor segment growth outlook for FY26 to 9-11%.  End

 

US$1 = INR 89.89

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Narayana Krishna

Edited by Rajeev Pai

 

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