The Wheels are Turning: Auto Sector Sees Major Gains

3 days ago

Indian auto stocks surged on January 2, 2025, fuelled by impressive December sales numbers, which propelled the Nifty Auto index to its highest daily gain in six months.

◉ Key Players

1. Eicher Motors EICHERMOT

● Surged 7%, with December sales up 25% YoY to 79,466 units, and exports rising 90% YoY.

2. Ashok Leyland ASHOKLEY

● Rose 5%, with December sales exceeding estimates, up 5% YoY, and Medium and Heavy Commercial Vehicles sales up 8% YoY.

3. Maruti Suzuki India MARUTI

● Extended gains for the second straight day, rallying 5%, driven by strong December car sales and bullish management commentary.

4. Mahindra & Mahindra M&M

● Up over 3% for the second consecutive day, with December SUV sales jumping 18% YoY to 41,424 units, driven by strong demand.

◉ Overall Outlook

The Indian automotive market is poised for continued growth, driven by a resilient economy and robust consumer demand. Potential interest rate cuts are expected to further fuel this growth, making vehicle financing more accessible and affordable for consumers. As a result, the road ahead looks promising for FY26, with expectations of sustained growth and increased sales in the automotive sector.