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Auto volumes continue to shine, CV steals the limelight

ICICIdirect Research 05 Dec 2025 DISCLAIMER

India’s automotive OEMs posted healthy volume prints for October + November 2025. It was primarily driven by sustained demand momentum post festive season and amplified by GST 2.0 reforms, which lowered vehicle prices and boosted consumer sentiment.
PV & CV segments outperformed peers. Volumes in this domain grew healthy ~20% on YoY basis
CV space reported healthy volume prints with continued recovery visible across M&HCV & LCV segments. This represents early green shoots of cyclical recovery in the CV space.
In CV segment, Tata motors reported healthy volumes of ~73k units, up ~18% YoY while volumes were up 23% YoY at Ashok Leyland. CV space surprised positively.
In the PV space, M&M outperformed with volume growth of 27% YoY while Tata Motors reported healthy volume growth of 26% YoY. Volumes at industry leader Maruti Suzuki also grew double digit at 16% YoY. Exports continue to do well at OEM’s and also grew in high double digits. Tata Motors EV volumes stood at 17k units (up ~63% YoY)
In the 2W space, TVS motors continued with its healthy growth and outperformed its peers growing ~18% YoY. While Eicher Motors (Royal Enfield) reported healthy growth of 17% YoY. Bajaj auto however underperformed and posted a steady show with 8% volume growth.
In tractor space, M&M reported volumes of ~1.2 lakh units, growing robust by ~19% YoY. Tractor space is well poised to clock double digit volume growth in FY26E.
With Nifty Auto Index up ~20% in CY26 vs. ~10% returns at the Nifty level, we are selectively positive on the Auto space with top bets as Maruti Suzuki (BUY; Target: ₹18,700), M&M (BUY; Target: ₹ 4,180) and Eicher Motors (BUY; Target: ₹ 7,850) in the OEM space

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