Auto Monthly Sales Volume - March 2025 by Axis Securities
Mar’25 Wholesale Volumes: Domestic PV industry sales grew by 5% YoY, approximately, driven by strong volumes from Toyota, M&M, and Kia, while Hyundai/Maruti witnessed declines. The domestic CV industry saw a growth of 2%/23% YoY/MoM. The domestic tractor industry registered 32% YoY volume growth, led by 34% and 15% YoY growth in M&M and Escorts, respectively. In the 2W segment, TVS and Eicher reported YoY growth of 15% and 33%, respectively, while Bajaj/Hero/Honda numbers are awaited.
PV Wholesale Nos: In Mar'25, PV OEMs' domestic wholesales grew by 5% YoY. Maruti Suzuki India's registered an overall sales decline of 1% YoY with higher sales to other OEMs offset by a 3% decline in entry-level cars. Domestic sales remained strong for Toyota, Kia, and M&M, which posted YoY growth of 13%, 19%, and 18%, respectively. Tata Motors grew by 3%, while Hyundai's domestic volumes declined by 2% YoY.
CV Wholesale Nos: Our proxy for CV domestic dispatches was up 2% YoY and 23% MoM. In Mar'25, domestic volumes for VECV, M&M, and Ashok Leyland grew by 6%, 14%, and 6% YoY, respectively, while Maruti and Tata Motors saw declines of 34% and 4% YoY. We expect low single-digit growth in FY26E for CV players, driven by strong demand in the Bus segment.
2W Wholesale Nos: Strong overall domestic volume growth was recorded in TVS, Suzuki, and RE, which grew by 14%, 33%, and 23% YoY, respectively. In exports, TVS, RE, and Suzuki Motorcycles registered YoY growth of 22%, 36%, and 15%, respectively. Volumes for Bajaj, Hero MotoCorp, and HMSI are pending. Going ahead, upside triggers for domestic demand include (i) Rural uptick, (ii) New model launches, and (iii) Government’s push on consumption (Tax relief for middle class).
Recovery in the tractor industry: Strong volumes were recorded in M&M and Escorts, which grew by 34% and 15% YoY in the domestic market. We expect demand momentum to remain strong in FY26E, supported by rabi sowing, improved water levels in reservoirs, and a favorable base effect.
In the long term, we prefer TVS Motors and Hero Motocorp in 2Ws; M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also keep a close watch on Ashok Leyland and Eicher (VECV) in the CV space for potential volume growth.
2W/3W Segment
TVS Motors’ total 2W sales in Mar’25 were up ~16.2%/2.1% YoY/MoM. 3W sales were up 43.6%/20.5% YoY/MoM respectively. TVS iQube sales stood at 26,935 units, up ~77% YoY. Exports were up 23% YoY.
Bajaj Auto’s: pending
Hero Motocorp: pending
RE total sales were up ~34% YoY, ~11% MoM. Exports were up 34% YoY.
PV & CV Segment
Maruti Suzuki’s total sales in Mar’25 were up 3.1% YoY but down 3.2% MoM. The domestic sales were down 0.8%/8.2% YoY/MoM, respectively.
Mahindra's PV division was up 18.3% YoY but down 4.7% MoM, while LCV was up 14.4% YoY and largely flat MoM.
Tata Motors' total sales were flat YoY, and up 17% MoM. The domestic PV sales up 3.1%/10.8% YoY/MoM; CV sales were down 4.5% YoY but up 26.3% MoM.
Ashok Leyland's total sales were up ~5.8%/34.4% YoY/MoM. Domestic MHCV was up 11.8%/59.1% YoY/MoM, respectively.
Eicher Motors (VECV) total CV sales were up 7.6%/49.5% YoY/MoM, respectively.
Tractor Segment
M&M’s total tractor sales were up 34.2%/36.9% YoY/MoM, respectively.
Escorts Kubota Limited tractor sales were up 15%/32.4% YoY/MoM, respectively; The ECE segment declined by ~16.3% YoY but increased by 9.4% MoM, respectively.
Above views are of the author and not of the website kindly read disclaimer
