Auto shares jumped on the first trading day of the year as several manufacturers released their December numbers.
Market Overview
The Nifty Auto index rose more than 0.7% to 28,400.90 by early afternoon, marking a third straight session of gains.
Mahindra & Mahindra (M&M) Performance
M&M’s shares climbed over 1% after the company announced a 25% year‑on‑year increase in December sales, reaching 86,090 units.
- Utility vehicle sales: 50,946 units (+23% YoY)
- Commercial vehicle sales: 24,786 units (+34% YoY)
CEO Nalinikanth Gollagunta highlighted that 2025 ended with record volumes in both SUVs and light commercial vehicles.
Maruti Suzuki Performance
Maruti Suzuki reported a 22% YoY rise in total December sales, delivering 217,854 vehicles.
- Domestic sales: 192,115 units (+36% YoY)
- Passenger vehicle sales: 178,646 units (+37% YoY)
- Small‑car sales: 92,929 units (+50% YoY, highest since Jan 2025)
- Utility vehicle sales: +33% YoY
Other Auto Stocks
Shares of Ashok Leyland surged more than 3%, making it the top gainer on the index. TVS Motor Company and Tube Investments of India each rose over 1%.
Tata Motors Passenger Vehicle, Bajaj Auto, Bharat Forge, Exide Industries and Samvardhana Motherson also posted modest gains.
Companies That Fell
Eicher Motors, Hero MotoCorp, Bosch and Sona BLW Precision Forgings moved lower, breaking the overall positive trend.
Escorts Kubota Highlights
Escorts Kubota, not part of the Nifty Auto index, jumped more than 3% to ₹3,850 after reporting a 38.5% YoY increase in total sales, with domestic tractor sales up 36.1% and exports up 64.3%.
Why the Rally? Tax Cuts Helped
In September, the government lowered GST on small cars to 18% (from 28%) and on SUVs over 1,500 cc to 40% (from about 50%). The reduced taxes have boosted demand for both segments, supporting the recent sales growth.
Key Takeaways
- Strong December sales from major players lifted the auto index.
- Tax reductions on small cars and larger SUVs are still spurring buyer interest.
- While most auto stocks rose, a few companies lagged behind the market trend.
Remember, this is just an overview, not a prediction. Do your own research before making any investment decisions.