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OEM volumes shine on festive demand & GST cuts…

ICICIdirect Research 03 Oct 2025 DISCLAIMER

As the festive season commenced along with anticipated GST rate cuts, OEM wholesale volume for September 2025 came in healthy.
Two important points here are: First, this was a transition month due to change in GST rates and hence was expected to be steady; so, in that backdrop OEM wholesales came in healthy
Second the Volume numbers for the month also had a base effect with Navratri season coming in early this time (22nd Sep – 2nd Oct) vs. last year (3rd Oct – 12th Oct).
Exports continue to stage a healthy growth on YoY basis for most of the OEMs. CV space reported healthy volume prints for the month with green shoots of recovery visible in LCV space.
Tata motors set the bar high, outperforming in both PV & CV segment, while Royal Enfield (Eicher motors) lead the growth charge in the 2W domain.
M&M continues to decisively dominate the tractor segment.
In the 2-W pack, TVS motors reported 11% growth at 5.2 lakh units. While Eicher Motors (Royal Enfield) outperformed its peers & reported healthy growth of 43% YoY at ~1.24 lakh units.
In PV space, Maruti reported flat volumes YoY at ~1.9 lakh units (production however up 26% YoY at 2 lakh units) while M&M saw a growth of 10% at ~56k units. Tata Motors EV volumes stood at 9,191 units (highest ever, up ~96% YoY) amidst an overall volume growth of ~47.4% YoY at ~61k units, outpacing peers. Volume for Hyundai was at ~70K units (up 9.6% YoY).
All OEMs in the PV space hinted at robust start to festive season & even witnessed logistics issue towards later part of the month impacting volumes.
In CV segment, Tata motors reported healthy CV volumes of ~36k units, up ~19% YoY. Ashok Leyland volumes were up by 9.2% YoY at ~19k units.
In tractor space, M&M reported volumes of ~66k units, up by ~49% YoY while Escorts Kubota reported healthy 47% growth at ~18k units.
We are positive on the Auto space with top bets as Maruti Suzuki (BUY; Target: ₹17,160), M&M (BUY; Target: ₹ 4,180) and Eicher Motors (BUY; Target: ₹ 7,680) in the OEM space

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