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

ICICIdirect Research 02 May 2025 DISCLAIMER

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).

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