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Informist, Monday, Dec. 29, 2025

 

MUMBAI – Nuvama Wealth Management said automobile companies continue to benefit from lower goods and services tax, which has resulted in better demand in December, too. The brokerage expects double-digit year-on-year growth in sales volumes across categories for the month.

 

"Sales volumes are likely to be driven by continued positive customer sentiments spurred by better affordability (courtesy GST cuts), new products, interest rate cuts and adequate finance availability despite some pressure on rural sentiments due to a drop in retail crop prices," the broking firm said in a report. "Furthermore, we reckon exports shall rise in double digits led by growth in Asia, Africa, and Latin America."

 

Two-wheeler companies are expected to report the highest growth of 22% on year in sales volume during December, followed by rise of 21% in passenger vehicle sales, 17% in commercial vehicle sales, and 14% in tractor sales. Most companies are likely to report their sales figures for December on Jan. 1.

 

TWO-WHEELERS

The brokerage expects strong demand for two-wheelers from urban areas. It sees some hit to demand from rural areas due to the year-on-year drop in retail crop prices. TVS Motor Co. is expected to be the top performer among two-wheeler makers with year-on-year volume growth expected at 29% in December. It is likely to be followed by 26% growth for Royal Enfield bikes, 23% growth for Hero MotoCorp, and 18% for Bajaj Auto.

 

PASSENGER VEHICLES

Demand for passenger vehicles is expected to have been strong in December, though driven by higher discounts. Discounts have increased sequentially for all original equipment manufacturers in the passenger vehicle segment, it said.

 

It expects Mahindra & Mahindra to report the strongest growth among peers at 29% on year. Maruti Suzuki's sales volume is expected to rise 23% on year and that of Tata Motors Passenger Vehicles by 19%. Hyundai Motor India may report poor sales growth of just 9%, according to the broking firm's estimates.

 

COMMERCIAL VEHICLES

For the commercial vehicles segment, freight availability was better due to higher consumption demand. The brokerage also noticed a shift to new vehicles from used vehicles. It said the commercial vehicles business of Eicher Motors is likely to report 18% higher sales volume in December. Tata Motors and Ashok Leyland are each likely to see a rise of 17% on year in sales volumes.  End

 

Reported by Anshul Choudhary

Edited by Rajeev Pai

 

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