Auto stocks in demand: Maruti hits new high; Hero Moto, Ashok Leyland up 2%

Auto shares price movement today

 

Shares of automobile companies were in demand, with the BSE Auto index gaining nearly 1 per cent in Tuesday’s intra-day trade in an otherwise subdued market on expectations of healthy December sales numbers.

 

At 11:18 AM; BSE Auto index, the top gainer among sectoral indices, was up 0.68 per cent, as compared to 0.09 per cent decline in the BSE Sensex. The auto index hit an intra-day high of 61,989.90. It had hit a record high of 62,496.62 on December 2, 2025.

 

Thus far in the calendar year 2025, the BSE Auto index has rallied 18 per cent, as against 8 per cent rise in the BSE Sensex.

 

 

Share price of Maruti Suzuki India (MSIL) hit a new high of ₹16,825, and was up 1.6 per cent in intra-day trade today. The stock surpassed its previous high of ₹16,798.80 touched on December 23, 2025. Ashok Leyland, up 2 per cent to ₹178 in intra-day trade, quoted close to its record high of ₹178.25 hit on December 23.

 

Hero MotoCorp, Bajaj Auto, Mahindra & Mahindra (M&M), TVS Motor, Tata Motors and Tata Motors Passenger Vehicles were up in the range of 1 per cent to 2 per cent in intra-day trade.  READ LATEST STOCK MARKET UPDATES LIVE

Brokerages view on auto sector

 

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 expect 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.

 

Meanwhile, Crisil Ratings expects MSIL’s operating margin will 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, the rating agency said.  ALSO READ | Silver Touch Tech up 7%, hits all-time high; here's what's boosting rally 

There is positive sentiment among farmers with a record production this kharif season & increase in rabi sowing acreage. Government’s progressive measure of GST rate reduction coupled with higher MSP is leading to positive cash flow for farmers & aiding tractor & farm implements demand, said M&M. The company’s auto and farm segments are projected to sustain healthy volume growth in FY26, driven by a strong pipeline of newly launched models and upcoming additions.

 

Following the GST rationalization, demand momentum has been sustained in November 2025, even post-festive season; this is a key positive for the sector. A notable trend is that entry-level vehicles, both 2Ws and PVs, are seeing a marked pickup in demand. With a recovery in demand, analysts at Motilal Oswal Financial Services expect discounts to gradually reduce after the festive season.

 

MSIL is the brokerage firm’s top pick among auto OEMs, as its new launches and the current export momentum are likely to drive healthy earnings growth. Analysts also like M&M, given the uptrend in tractors and healthy growth in UVs. In 2Ws, they are positive on TVS Motors.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.