Nifty Auto at new high; here's why Tata Motors, Ashok Leyland rose 5% today

Auto companies share price today

 

Shares of automobiles companies continued their upward movement with the Nifty Auto index hitting a new high at 27,832.60 on the NSE in Thursday’s intra-day deal on expectations of healthy November wholesales numbers. The index surpassed its previous high of 27,725.25 touched on September 23, 2025.

 

Tata Motors (formerly TML Commercial Vehicles) (₹341) and Ashok Leyland (₹156.40) from the commercial vehicle (CV) segment rallied 5 per cent each. Hero MotoCorp, TVS Motor Company and Bajaj Auto from the two-wheelers (2Ws) space were up 1 per cent each.

 

Thus far in the month of November, the Nifty Auto index has outperformed the market by gaining 3.3 per cent, as against a 1.5 per cent rise in the Nifty 50. Further, in the past four months, the auto index has surged 17 per cent, as compared to 6 per cent up move in the benchmark index.  ALSO READ | Inside Nifty's rise to new highs: Stocks and sectors driving the comeback

What's driving Tata Motors, Ashok Leyland stock prices?

 

According to Nuvama Institutional Equities, November wholesales shall be robust given the double-digit year-on-year (YoY) growth across 2Ws, CVs and passenger vehicle (PVs) coupled with a high single-digit growth in tractors. 

 

Meanwhile, sales volumes are likely to be driven by continued positive customer sentiment spurred by better affordability (courtesy GST cuts), strong rural demand, interest rate cuts and adequate finance availability.

 

CV industry volumes are anticipated to grow in double-digits in November 2025 (up 15 per cent YoY in domestic market) owing to positive impact of GST cuts (particularly in case of LCVs), improved freight availability (due to higher consumption demand), adequate financing availability and a low base.  Moreover, the brokerage firm reckons exports shall increase at double-digits due to growth in the Asian region. It estimates total volume shall increase 18 per cent YoY for Ashok Leyland (to 16,700 units), 18 per cent YoY for Tata Motors (to 32,500 units) and 17 per cent YoY for Eicher Motors-VECV (to 6,500 units).

 

Meanwhile, according to S&P Global Ratings, Tata Motors will likely maintain its dominant share of India’s CV market, with support from India’s economic growth, and favorable infrastructure and construction spending.  ALSO READ | Sensex hits new high, surged over 14% post breakout in past; check outlook 

The company will likely maintain a positive free cash flow and low leverage, given operating cash flow may sufficiently cover spending over the next three years. While Tata Motors' proposed acquisition of Iveco Group N.V. could significantly increase leverage, the transaction is largely credit neutral due to expectations of stronger business competitiveness, the global rating agency said.

 

Meanwhile, Ashok Leyland strong positioning in Medium and Heavy Commercial Vehicles (MHCVs), export momentum & progress in electric vehicles (EVs) supports its long-term growth narrative, however lack of clarity for volume recovery in the near term will keep stock price gains under check, analysts at ICICI Securities said.

 

The brokerage firm maintains HOLD rating on the stock & values Ashok Leyland at SOTP based target price of ₹165 (13x on avg. of FY27-28E EV/EBITDA, 2.5x P/B for long term investments).  ==========  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.