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Auto volumes - Steady start to the Year; exports lift overall volumes


OEM wholesale sales volume for April 2025 came in steady with PV & tractor segment outperforming its peers.
Notably, exports stagged a healthy growth on YoY basis for most of the OEM’s.
M&M outperformed in PV segment while TVS Motors lead the charge in the 2W domain. M&M continue to dominate the tractor segment. VECV (Eicher Motors) outperformed in the CV space.
In 2-W pack, TVS motors reported healthy volume growth of ~15% at 4.3 lakh units (led by 45% YoY growth in exports & 8% YoY growth domestically).
In PV space, volumes at M&M grew 27.6% YoY at 52k units. Post festive’24 this is the largest volume print at M&M.
In CV segment, industry leader Tata motors reported muted CV volumes of ~27.2k units, down ~8% YoY.
In tractor space, M&M reported volumes of 40k units, up by 8% YoY. The outlook for this space is positive tracking above normal monsoon forecast in 2025 & positive farm sentiments.
Overall, we are positive on PV space as we believe this space will benefit from personal income tax rationalisation in FY26E and 8th pay commission roll out for central government employees in FY27E. Our top bets in this space are M&M (Target Price: ₹ 3,700) and Maruti Suzuki (Target Price: ₹ 14,000).
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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