Indian auto stocks rallied on January 2, 2025, driven by robust December sales figures, sending the Nifty Auto index to a six-month high.
◉ Key Players
1. Eicher Motors
- Surged 7%, with December sales up 25% YoY to 79,466 units, and exports rising 90% YoY.
2. Ashok Leyland
- Rose 5%, with December sales exceeding estimates, up 5% YoY, and Medium and Heavy Commercial Vehicles sales up 8% YoY.
3. Maruti Suzuki India
- Extended gains for the second straight day, rallying 5%, driven by strong December car sales and bullish management commentary.
4. Mahindra & Mahindra
- 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.