Maruti Suzuki, Tata Motors, Hero Moto: Dec to record bumper auto sales across all segments

Indian automobile companies will share their sales data for the month and year ended on December 31, 2025 and brokerage firms foresee a strong sales data for the month considering benefits from GST, interest rate reduction by RBI, new product portfolio, export led-volumes and assurance of liquidity in the economy.

India’s automobile industry is set to deliver strong double digit YoY growth across passenger vehicles, two-wheelers, and MHCVs in December 25, supported by healthy consumer sentiment, improved affordability post-GST cuts, resilient rural demand, and better financing availability. Exports should rise in double digits, led by Asia, Africa, and LATAM, said Nirmal Bang Institutional Equities.

"We expect strong December growth in two wheelers (2Ws), The passenger vehicle (PV) demand outlook remains healthy as the segment continues to be SUV-led. Commercial Vehicle (CV) segment growth remains well supported by stronger freight movement. Tractors segment is likely to see strong double-digit growth in December in tractors despite seasonal weakness," it said.

Auto demand continued to be upbeat across all segments. All segments are likely to post double-digit growth in the month, said Motilal Oswal Financial Services. "In the PV segment, we expect the four listed players to post 19 per cent YoY growth in dispatches. Except Hero Moto, we expect the other three PV OEMs to post 20 per cent and above growth in the month."

Retail growth continues to be health within 2Ws. Demand momentum, even in CVs, has been strong, and we expect the top three CV OEMs to post 19 per cent aggregate growth in December 2025, said Motilal Oswal said. "Even tractor demand has remained healthy. Auto demand to remain healthy in the coming quarters as well led by GST rate cuts and favorable rural sentiments."

Centrum Broking interacted with multiple dealers to understand the underlying demand momentum in December. Its channel checks suggest demand momentum remained intact across PVs and 2Ws through December, supported by improved consumer sentiment, new launches and aggressive year-end schemes.

"In 2Ws, sentiments remains mixed with demand continues to remain bifurcated, growth clearly skewed toward scooters and premium motorcycles (>125cc), while entry-level commuter demand stays weak, particularly in urban pockets. Inventory across PVs and 2Ws remains comfortable at ~3–5 weeks, and discounting is expected to taper gradually after December 25," Centrum said.

PV volume is likely to have grown by a strong double-digit YoY, owing to robust retails, low inventory and new launches. 2W wholesale volume is likely to have grown by a strong double-digit YoY on robust retails and favourable lower YoY base. CV volume is likely to have grown in high teens due to GST cuts and rise in freight demand, said Anand Rathi Share & Stock Brokers.

Tractor volume is likely to have grown by high teens due to GST benefits and favourable agriculture conditions. Post GST reforms, wholesale volume of tractors/CV/PV/2W is expected to have grown by 27 per cent/16 per cent/12 per cent/11 per cent YoY. We maintain our positive stance on the auto sector, led by GST-rate reform benefits, better interest rates and higher income," it said.

December wholesales shall be robust with double-digit YoY growth across categories. Sales volumes are likely to be driven by continued positive customer sentiments spurred by better affordability (courtesy GST cuts), new products, interest rate cuts and adequate finance availability despite some pressure on rural sentiments due to a drop in retail crop prices, said Nuvama Institutional Equities.

"We reckon exports shall rise in double digits led by growth in Asia, Africa and Latin America. Our analysis shows TVS Motors and Eicher Motors would lead peers in 2Ws while M&M and Maruti Suzuki shall outperform among PVs. In all, we maintain our constructive view on the automobile sector," it said citing Maruti Suzuki, TVS Motor and M&M as its top picks from this space.

Maruti Suzuki is Motilal Oswal's top pick among auto OEMs as its new launches and the current export momentum are likely to drive healthy earnings growth. It also like M&M, given the uptrend in tractors and healthy growth in UVs. In 2Ws, we are positive on TVS Motor. "Our top auto ancillary picks are Endurance, SAMIL, and Happy Forgings," said Motilal Oswal.

Nirmal Bang's top recommendations are M&M and Maruti in 4Ws and Eicher Motors and Hero MotoCorp in 2Ws. "Suprajit Engineering and ASK Automotive continue to be our favored choice in auto components. CEAT is our top pick in the tyre space," it said. From the 2Ws space, Anand Rathi has picked Hero MotoCorp, while Maruti Suzuki from CV space. Ashok Leyland is its top pick from commercial vehicle segment.