Auto shares in demand; TVS Motor, Maruti Suzuki zoom up to 54% in CY2025

The BSE Auto index, up 18% thus far in the calendar year 2025, is set to outperform the BSE Sensex for the fourth straight calendar year.

Shares of automobiles including auto parts companies were in demand with the BSE Auto index gaining 1 per cent in Thursday’s intra-day trade owing to a healthy outlook for the sector.

 

At 02:23 PM; the BSE Auto index was the top gainer among sectoral indices, up 1 per cent as compared to 0.44 per cent rise in the BSE Sensex.

 

Sona BLW Precision Forgings, Samvardhana Motherson International, Bharat Forge, Maruti Suzuki India, Ashok Leyland, Bosch, Tata Motors Passenger Vehicles and Bajaj Auto were up in the range of 1 per cent to 4 per cent.

 

Thus far in the calendar year 2025 (CY25), the BSE Auto index has outperformed the market by soaring 18 per cent, as against a 8 per cent rise in the BSE Sensex. The auto index is set to outpace the benchmark index for the fourth straight calendar year. In CY23, the auto index had zoomed 46 per cent, soared 22 per cent in CY24 and was up 16.5 per cent in CY22.

 

 

TVS Motor Company, Eicher Motors, Maruti Suzuki India, Ashok Leyland and Hero MotoCorp from the auto index have rallied between 43 per cent and 55 per cent. Lumax Industries, Lumax Auto Technologies, Gabriel India, SML Mahindra and Force Motors from the non-index stocks have zoomed in the range of 100 per cent and 170 per cent.

 

India’s automotive OEMs posted healthy volume prints for November 2025. It was primarily driven by sustained demand momentum post festive season and amplified by GST 2.0 reforms, which lowered vehicle prices and boosted consumer sentiment. OEM wholesale sales volume for November 2025 came in healthy with passenger vehicle (PV) & commercial vehicle (CV) segment outperforming peers. CV space reported healthy volume prints for the month of November’25 with continued recovery visible across medium and heavy commercial vehicle (M&HCV) & the light commercial vehicle (LCV) segments, ICICI Securities said in its auto sector report.  CATCH STOCK MARKET LIVE UPDATES TODAY

 

Meanwhile, for fiscal 2026, Crisil Ratings expects Maruti Suzuki India to register a revenue growth of 15-17 per cent, primarily driven by 8-9 per cent volume growth, led by revival in domestic demand in the second half of fiscal 2026, and continuing strong export growth. Earlier, revenue grew by 7.8 per cent in fiscal 2025, driven by modest volume and realization growth of 4 per cent, enabled by improved product mix in favour of utility vehicles (UVs).

 

Crisil Ratings expects Maruti Suzuki India’s operating margin to sustain at 12-13 per cent over the near to medium term supported by improving operating leverage due to surge in offtake of small cars on the back of recent GST reforms, expected rise in share of exports, anticipation of stable raw material prices and forex movements. While the company is operating its plants at nearly 90 per cent capacity at present, commissioning of fresh capacity, currently under implementation, will bolster MSIL’s market leadership position.

 

As regards to Ashok Leyland, CareEdge Ratings said the company’s market share is expected to improve in the M&HCV and LCV segments over the medium term, supported by a healthy revenue growth driven by increasing volumes and operating margins sustained above 10-11 per cent. The financial risk profile is expected to remain robust in the near-to-medium-term.

 

MHCV trucks smoothly transitioned to the AC mandate, signifying growing acceptance towards safety and comfort in the Indian trucking industry. GST 2.0 added cheer to the festive season on two accounts, the rate rationalization from 28 per cent to 18 per cent brought down the cost of owning new trucks and buses, while GST rate reduction in several other categories of goods is expected to increase the overall freight demand, Ashok Leyland said.