loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Auto Volumes - Steady Volumes for May’25, Exports drive momentum

ICICIdirect Research 06 Jun 2025 DISCLAIMER

OEM wholesale sales volume for May 2025 came in steady with 2W & 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 Royal Enfield (Eicher motors) lead the growth charge in 2W domain. M&M continues to decisively dominate the tractor segment.

In 2-W pack, TVS motors continued with its healthy growth of ~16% at ~4.2 lakh units (With 22% YoY growth in exports & ~15% YoY growth domestically). While Eicher Motors (Royal Enfield) outperformed its peers & reported healthy growth of 26% YoY at ~89k units. Bajaj auto posted a steady show & witnessed a growth of ~9% YoY led by 20% growth in exports

In PV space, M&M continued with its healthy performance, growing 21.3% YoY at 52k units. Maruti Suzuki reported steady prints for the month (up 3.2% YoY) at 1.77 lakh units. Tata Motors EV volumes stood at 5,685 units (up 2% YoY) amidst an overall volume decline of 11% YoY at 42k units (possibly due to Altroz refresh rollover). Volume for Hyundai was at ~58.7K units (down 7.6% YoY).

In CV segment, Tata motors reported muted CV volumes of ~28.1k units, down ~5.2% YoY. Ashok Leyland volumes were up by 5.5% YoY at ~15.5k units. While volumes at VECV arm of Eicher Motors grew 7.3% YoY at 7.4k units. With expected pick up in government and private capex, CV volumes are likely to improve going forward (positive YoY growth in FY26).

In tractor space, M&M reported volumes of 40.6k units, up by 9.5% YoY while Escorts Kubota reported a flattish volume at 10.3k units. Tracking positive monsoon outlook 2025, good water reservoir levels, strong rabi outlook & positive farm sentiments, tractor space is well poised for growth.

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: ₹ 3,750) and Maruti Suzuki (Target Price: ₹ 14,000).

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere