Auto stocks continued to move in top gear as demand for automobiles remained resilient in December, even after the festive season, as reflected in robust wholesale volumes across segments.
The Nifty Auto index touched another fresh record high of 29,179, surging 1.3% in Monday’s session (January 05) and marking its fifth straight session of gains, resulting in a cumulative rise of 5.75%.
Among individual stocks, Eicher Motors’ share price surged 2% to the day’s high of ₹7,477 apiece, while Maruti Suzuki, UNO Minda, TVS Motor Company, Hero MotoCorp, and Bajaj Auto were all trading with gains of over 1%.
All listed OEMs posted strong wholesale growth in December, with most recording double-digit expansion, as sustained demand, higher discounts, and GST rationalisation helped the domestic automobile industry finish the year on a solid note.
More importantly, demand for entry-level vehicles, across both two-wheelers (2Ws) and passenger vehicles (PVs), witnessed a rise following GST rationalisation, making these models more affordable for budget-conscious buyers.
Hero MotoCorp, Bajaj Auto, TVS Motor Company, and Royal Enfield domestic wholesales rose 43%, 4%, 54%, and 30% YoY. In the PV segment, Maruti Suzuki, Mahindra & Mahindra, Tata Motors Passenger Vehicles, and Hyundai Motor India domestic PV wholesale grew 37%, 23%, 14%, and flat YoY, respectively.
Broad-based auto demand lifts Q3 volumes; CVs, tractors lead growth
According to brokerage firm Motilal Oswal, overall auto industry volume growth in the December quarter (aggregate for all listed OEMs) stood at 17% year-on-year. Notably, growth was broad-based, with 2Ws and PVs rising 17% YoY each, commercial vehicles (CVs) growing 22% YoY, and tractors up 21% YoY.
Within two-wheelers, TVS Motor (+27%) and Royal Enfield (+21%) continued to drive growth. Meanwhile, Hero MotoCorp’s volumes rose 13%, while Bajaj Auto’s sales grew 10%. Similarly, in passenger vehicles, excluding Hyundai Motor India, the other three listed OEMs posted healthy double-digit growth.
“A key highlight has been that all three CV OEMs posted over 20% growth in the third quarter. Further, within tractors, while Mahindra & Mahindra recorded 23% YoY growth, Escorts’ volumes grew 14% YoY,” the brokerage said.
Demand to stay resilient in 2026
Brokerage firm JM Financial sees continued positive consumer sentiment, driven by GST rationalisation, the upcoming marriage season (February 2026), and the recent formation of the 8th Pay Commission. These factors are expected to support demand momentum, particularly in entry-level domestic passenger vehicles (PVs) and two-wheelers (2Ws).
Commercial vehicle (CV) demand is likely to maintain momentum, led by higher government capex and improved infrastructure activity.
Motilal Oswal said that following GST rationalisation, demand has picked up across segments and appears to have remained intact even after the festive season.
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