Auto maker stocks climb on upbeat Feb sales; M&M, TVS, Eicher gain over 2%

Shares of vehicle manufacturers were climbing on Monday's session, after a number of automaker companies reported higher sales numbers for February 2025

Shares of auto manufacturers were in focus on Monday, with a number of automaker stocks climbing higher. Auto makers' stocks were climbing higher after the companies reported their February month sales numbers. 

  On the NSE, the Nifty Auto index, made up of stocks of some of the biggest auto makers in the country, was trading higher by 0.77 per cent, at 9:35 AM.  

  It opened higher by 0.45 per cent from its previous close, at 20,591.50. Further, it gained nearly 1.8 per cent intraday, to climb to a day's high of 20,865.85, from its previous session close. 

  Among its constituents, shares of Mahindra & Mahindra, TVS Motor, and Eicher Motors were the top gainers, trading higher by 2.66 per cent, 2.48 per cent, and 2.22 per cent, respectively, at 9:40 AM.  

 

  In contrast, however, shares of Tata Motors were among the top laggards, falling 0.99 per cent. Meanwhile, shares of Maruti Suzuki India was trading flat and Hero MotoCorp was marginally higher by 0.17 per cent. 

  Mahindra & Mahindra stock, which is a constituent of both the BSE Sensex and the Nifty50 index, was the top gainers on the benchmark indices.

  February 2025 auto sales data

  Mahindra & Mahindra reported a 15 per cent year-on-year rise in total auto sales, at 83,702 units in February, compared to sales of 72,923 units in February last year. 

  The company sold 19 per cent more utility vehicles during the month, at 50,420 units in the domestic market, compared to 42,401 units in the year-ago period. 

  Moreover, the company's total tractor sales for the period climbed 17.8 per cent, to 25,527 units last month, compared to 21,672 units in the same period last year. 

  Meanwhile, Maruti Suzuki India reported a marginal year-on-year increase in total sales, reaching 1,99,400 units in February, compared to 1,97,471 units in the same month, according to a statement by the company. The company's domestic passenger vehicle sales were 1,60,791 units last month, compared to 1,60,271 units in the previous year. 

  Another auto company, Tata Motors reported an 8 per cent year-on-year decline in domestic and international sales, totaling 79,344 units in February, compared to 86,406 units in the same month last year. The company's total domestic sales fell 9 per cent to 77,232 units last month, from 84,834 units in the previous year, according to a regulatory filing by Tata Motors. 

  Among two-wheeler makers, Eicher Motors, known for making Royal Enfield motorcycles, reported a 19 per cent year-on-year rise in total sales, at 90,670 units in February, compared to 75,935 units in the year-ago period. The company's domestic sales reached 80,799 units, up from 67,922 units in February last year, representing a 19 per cent increase, according to a statement by Royal Enfield. Exports also jumped by 23 per cent, to reach 9,871 units last month, compared to 8,013 units in February 2024. 

Brokerages see weak demand across segments

  According to brokerage firm Emkay Global Financial Services, demand weakened across segments in February 2025, while growth momentum in tractors sustained. 

  The brokerage firm said, in two wheelers, RE (Royal Enfield, Eicher Motors)/TVSL (TVS Motor Company) dispatches were up 19.4 per cent/ 9.5 per cent year-on-year (Y-o-Y), respectively, as against a 17.2 per cent decline at HMCL (Hero MotoCo). 

  "In passenger vehicles (PVs), M&M continued to outperform. MSIL (Maruti Suzuki India) posted a steady 3.8 per cent YoY growth in dispatches, led by 6.2 per cent growth in UVs, while TTMT (Tata Motors)/ HMIL (Hyundai Motor India) witnessed volume decline of 9.4/4.9 per cent," it added. 

  Further, analysts at Emkay Global said two wheelers' decline was lower than that for PVs and CVs during the month. 

  "TVSL and EIM (Eicher Motors) continue to gain market share with strong product actions and pricing discipline, while exports revive as macro challenges ease. Valuations for both remain reasonable post-correction. In PVs, MSIL is best placed with two ICE SUV launches, followed by HMIL, while other OEM launches are largely EV focused," it said. 

  The brokerage firm added that M&M faces headwinds with its ICE-SUV cycle behind, peak tractor share, and muted E-SUV bookings. It picked TVS Motor and Eicher Motors in 2Ws, and Maruti Suzuki in PVs, along with Escorts in the tractors segment.