India’s auto market kept its momentum after the festive season, sending the Nifty Auto index to a fresh high of 29,179.
Record high for Nifty Auto
The index jumped 1.3% on January 5, marking five straight days of gains and a total rise of about 5.75% for the week.
Top‑gaining stocks
- Eicher Motors rose 2% to ₹7,477.
- Maruti Suzuki, UNO Minda, TVS Motor, Hero MotoCorp and Bajaj Auto each climbed over 1%.
Wholesale sales surge in December
All listed manufacturers reported double‑digit growth in domestic wholesales. Lower prices, bigger discounts and the recent GST rationalisation made entry‑level models more affordable, boosting demand.
- Hero MotoCorp: +43% YoY
- Bajaj Auto: +4% YoY
- TVS Motor: +54% YoY
- Royal Enfield: +30% YoY
- Maruti Suzuki (passenger cars): +37% YoY
- Mahindra & Mahindra (passenger cars): +23% YoY
- Tata Motors (passenger cars): +14% YoY
- Hyundai Motor India (passenger cars): flat YoY
Quarterly volume growth across segments
Motilal Oswal estimates overall industry volumes grew 17% year‑on‑year in the December quarter. Growth was broad‑based:
- Two‑wheelers: +17% YoY
- Passenger vehicles: +17% YoY
- Commercial vehicles: +22% YoY
- Tractors: +21% YoY
Key contributors were TVS Motor (+27%) and Royal Enfield (+21%) in the two‑wheeler space, while Hero MotoCorp and Bajaj Auto added 13% and 10% respectively.
Looking ahead to 2026
JM Financial expects consumer sentiment to stay positive, thanks to GST rationalisation, the upcoming marriage season (February 2026), and the new 8th Pay Commission. These factors should keep demand strong for entry‑level cars and two‑wheelers.
Commercial vehicle sales are also likely to stay robust, supported by higher government spending on infrastructure.
Takeaway
The auto sector’s solid December performance shows that demand remains resilient even after the holidays. Investors may want to watch how GST‑related price benefits and seasonal buying patterns influence future sales.
Disclaimer
Remember, this is just an overview, not a prediction. Always do your own research or talk to a qualified advisor before making any investment decisions.