M&M, Ashok Leyland: Auto index hits new high as OEMs report Dec 2025 sales

Ashok Leyland and TVS Motor Company hit their respective all-time highs, while, M&M was close to its record high level

BSE Auto index movement today

 

Shares of automobile companies were in demand on Thursday, with the BSE Auto index hitting a new high of 63,011.82. The index gained 1 per cent in the intraday trade as automobile companies began reporting strong auto sales updates for the month of December 2025. In comparison, the BSE Sensex was up 0.14 per cent at 11:21 AM.

 

In the past three trading days, the BSE Auto index has rallied 3 per cent. Further, in the past six months, it has surged 18 per cent.

 

Ashok Leyland (up 3 per cent at ₹184.50), and TVS Motor Company (up 2 per cent at ₹3,780) hit their respective all-time highs today. Mahindra & Mahindra (M&M), which gained 2 per cent to hit an intraday high of ₹3,774, meanwhile, was trading close to its record high level of ₹3,796, touched on December 1, 2025.

 

Tata Motors shares, too, rose 2 per cent to ₹426.15 on the BSE in the intraday trade.  READ STOCK MARKET LIVE UPDATES TODAY 

M&M, Escorts Kubota, VST report strong December 2025 auto sales

Sharing its monthly auto sales update, Mahindra & Mahindra (M&M) said the automobile company's total auto sales for the month of December 2025 rose 25 per cent year-on-year (Y-o-Y) to 86,090 units.

 

Segment-wise, M&M said it sold 50,946 vehicles in the domestic market in the Utility Vehicles segment, clocking a growth of 23 per cent. Including exports, it sold 86,090 vehicles in the segment. Further, the domestic sales for Commercial Vehicles rose 34 per cent Y-o-Y to 24,786.

 

Eicher Motors, on the other hand, said that its unlisted subsidiary, VE Commercial Vehicles, reported a 26.3 per cent Y-o-Y increase in the total domestic sales of trucks and buses, including electric vehicles, to 9,527 units in December, 2025. Total exports increased 32.7 per cent to 650 units in the same category during the month.  For two-wheelers (motorcycles), Eocher Motors said its total sales increased 30 per cent Y-o-Y to 1,03,574 units. 

 

VST Tillers and Tractors, too, announced that it sold 3,792 power tillers in December 2025, compared to 3,007 tillers in December 2024.

 

Besides, VST Tillers sold 584 tractors in December 2025, rising from 365 units in December 2024.    ALSO READ | ITC down 10%, Godfrey Phillips 19% as addl excise duty effective from Feb 1

Brokerages expect strong sales from automobiles in December

 

Auto original equipment manufacturers (OEMs) are expected to report robust auto sales for December 2025, aided by rationalisation of GST rate, analysts said.

 

ICICI Securities expects solid double-digit year-on-year (Y-o-Y) growth in India's automobile sales volumes across two-wheelers (2W), passenger vehicles (PV), commercial vehicles (CV), and tractors for December 2025, driven by positive customer sentiment from GST cuts, interest rate reductions & new product launches.

 

The brokerage firm expects the growth charge to be led by Eicher Motors & TVS Motors in the 2-W segment, M&M in the PV and tractor space, and Ashok Leyland in the CV domain.

 

"CV domain volumes will be the key monitorable as it surprised us in the past month. Our top bet in the auto OEM space remains Maruti Suzuki and M&M at the current standpoint," ICICI Securities said in a note.

 

According to Anand Rathi Research, PV volume is likely to have grown by a strong double-digit Y-o-Y, owing to robust retails, low inventory and new launches. 2W wholesale volume, it said, is likely to have grown by a strong double-digit Y-o-Y on robust retail sales and favourable lower Y-o-Y base (down 9 per cent in December 2024).

 

CV volume, too, is likely to have grown in high teens due to GST cuts and rise in freight demand. Tractor volume is likely to have grown by high teens due to GST benefits and favourable agriculture conditions.

 

"Post GST reforms (August-December 2025 period), the wholesale volume of tractors/CV/PV/2W is expected to have grown by 27/16/12/11 per cent Y-o-Y. We maintain a positive stance on the auto sector, led by GST-rate reform benefits, better interest rates and higher disposable income," it said, preferring Hero MotoCorp, Maruti Suzuki, and Ashok Leyland.  ALSO READ | Blue Dart Express share price surges 9% on price hike, GST demand relief 

Near-term momentum in the medium & heavy commercial vehicles (M&HCV) truck segment remains strong, led by e-commerce and higher infrastructure spends. Analysts at Kotak Institutional Equities expects M&HCV truck industry volumes to grow 8 per cent year-on-year (YoY) in FY2026E (versus 5 per cent earlier), but they maintain FY2026-28E compound annual growth rate (CAGR) expectations at 4-5 per cent.

 

The brokerage firm expects the M&HCV buses and light commercial vehicle (LCV) segments to deliver steady 7-8 per cent CAGRs, led by post-GST affordability gains and state transport utility (STU) fleet additions.

 

The M&HCV truck segment to continue its strong momentum in the second half of the financial year 2025-26 (H2FY26E), led by a strong uptick in Intermediate Commercial Vehicles (ICV), Haulage and Multi-Axle Vehicles (MAV) segment demand, driven by e-commerce and a steady uptick in the infrastructure segment, a recovery in the tipper segment’s demand, driven by a seasonal uptick in construction, mining and infrastructure-related activities and steady freight rates and improving fleet utilization levels of fleet operators.

   

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