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Quick Pointers:

* GST reforms and improved rural sentiments sustain the industry momentum

* Government infra push & end-use sectors’ expansion can drive CV upcycle

December wholesale numbers came in very strong across all segments, keeping the industry buoyed. Better Kharif harvest, Rabi acreage and water reservoir levels led to improved rural sentiments and retail sales. Most PV OEMs reported their best-ever quarterly or CY sales as GST benefits combined with year-end discounts improved affordability. 2Ws grew stronger than expected as the inventory was lean after an unanticipated retail demand in Oct-Nov’25. Tractors saw solid growth with govt. policy support and state subsidies, with the momentum expected to sustain in coming months. LCVs saw good growth but MHCVs outperformed as replacement demand was seen with customers gradually moving to higher tonnage vehicles post GST cuts. Construction equipment (CE) remained under pressure albeit over a higher base in Dec’24, with sentiments visibly improved. Rebound in mining & construction activities after the extended monsoon and sustained demand from the core sectors & auto logistics are expected to sustain an upcycle in CVs and improve CE sales.

OEM wise highlights:

Mahindra & Mahindra: Strong growth across all domestic segments continues, Automotive exports moderate. Early signs of CV (>3.5T) upcycle seen.

Overall group sales up +28.8% YoY (1,20,209 units). Total Auto sales +25.1% (excl. T&B) to 86,090 units, domestic UVs +23.0% YoY (50,946 units). Auto exports decline -8.8% YoY. 3-Ws resumed strong growth (+31.1% YoY) to 7,538 units. Farm equip. volumes grew +38.9% YoY to 31,859 units (Domestic +37.2%, exports +78.5% YoY) aided by GST rate cut, improved weather conditions and better crop harvest/sowing, demand is expected to sustain in coming months. Total T&B Division (CV>3.5T, incl. SML) sales +43.0% YoY to 2,260 units driven by SML. Supportive demand drivers and policies are expected to further accelerate sales in Q4 FY26 and the industry is showing early signs of an upcycle. FYTD YoY: Overall +18.8%, UVs +18.4%, LCV (<3.5T) +12.8%, T&B +13.1%, 3Ws +28.4%, Auto exports +25.0%, Tractors (incl exports) +20.8%. It achieved its highest ever yearly SUV and LCV sales in CY25.

Maruti Suzuki: Very strong domestic PV growth continues led by small cars this month, while exports saw decline.

Overall 2,17,854 units sold (+22.2% YoY). Total domestic sales (incl. Sales to other OEMs) grew +36.4% YoY, partially offset by decline in exports to 25,739 units (- 31.2% YoY). Excl. Sales to other OEMs, domestic passenger cars were up +48.0% (92,929 units) and UVs up +32.6% YoY (73,818 units), translating to domestic PV sales growth of +36.2% YoY. LCV (Super Carry) grew strong +46.3% YoY to 3,519 units. SUV penetration as % of their total domestic PV sales (excl. sales to other OEMs) was at 41.3% for the month (-145bps YoY, -110bps MoM). Export penetration at 11.8% of their overall portfolio (-920bps YoY, -830bps MoM). FYTD YoY: overall +7.2%, domestic PV +3.6%, domestic LCV +12.5%, while exports +25.5%. Achieved its highest-ever monthly domestic sales (1,82,165 units) and CY total sales (23,51,139 units) incl. peak exports (3,95,648 units) this year

Tata Motors PV: Moderate domestic PV growth (slower rate v/s industry). Dealer inventory lower at ~18days as retails exceed wholesales (good channel health with focus on demand-led growth).

PV sales grew +14.1% YoY to 50,519 units. Domestic sales +13.1% to 50,046 units while exports surged 8x, YoY. PV industry is expected to grow well with TMPV accelerating its growth in FY26. Nexon was India’s top-selling car/ SUV in Oct & Nov’25, Punch and Tiago delivering strong growth compared to resp. segment peers. Total EV sales of 6,906 units (+24.2% YoY, -12.7% MoM) with 13.7% penetration (+110bps YoY, +30bps MoM). Highest-ever EVs sold by them in a CY (81,125 units). In Q3 FY26, it achieved its highest-ever quarterly wholesales at 1,71,013 units with retails > 2lakh units. CNG vol 47,000+ units, SUVs +18% YoY, EVs ~ +50% YoY. FYTD YoY: Total PV +7.6%, domestic +6.2% and exports > 4x. EVs +34.9% YoY.

Hyundai Motor India: Flat domestic PV sales (very weak v/s industry growth) with healthy optimized stock (Dec’25 Vahan retails grew in double-digits YoY). Strong exports growth continues.

Overall volume +6.6% YoY to 58,702 units. Export volumes +26.5% YoY, while domestic growth still struggled (+0.5% YoY to 42,416 units). New VENUE (its 1st Software defined vehicle) from the Pune plant saw 55,000+ bookings within 2 months of launch. Exports from India, which is management’s focus, had a 27.7% penetration in its portfolio (+440bps YoY, +310bps MoM). FYTD YoY: Overall sales -0.6%, domestic sales -6.0%, exports +18.5%.

Bajaj Auto: Domestic 2Ws continue to be subdued. Overall exports and CVs sustain momentum to aid overall growth.

Overall volumes +14.4% YoY to 3,69,809 units. Exports (+24.7% YoY) continued outpacing domestic growth (+4.3% YoY). 2W volumes: +14.0% YoY to 3,10,353 units, domestic 2W +3.0% (1,32,228 units), exports +23.8% YoY (to 1,78,125 units). CV volumes remained strong (+16.7% YoY) with growth in both exports (+32.3%, continuing their surge) and domestic (+9.0%) YoY. FYTD YoY: Overall sales +5.6% YoY supported by exports (+19.4%) while domestic down (-3.1% YoY). 2W up +3.7% YoY (domestic down -4.4%, exports +15.5% YoY), CV up +17.1% YoY (domestic +3.3%, exports 1.5x).

Eicher Motors: Royal Enfield: Strong growth persists in 350cc bikes for the 2nd consecutive month post GST2.0 reforms. Overall volumes +30.3% YoY (1,03,574 units), domestic sales up +37.2% (93,177 units), International business decline -10.2% YoY. Expect growth momentum to continue. Models 350cc models -19.0% YoY (8,094 units). Hunter 350 refresh launched in Nepal with new slip-and-assist clutch (1st time for RE 350cc bikes) along with some cosmetic & ergonomic changes. Custom motorcycles VITA and Caroline Reaper showcased at the 33rd Annual Yokohama Hot Rod Custom Show 2025 (Japan). FYTD YoY: overall +26.7%, 350cc +12.2%. Domestic +25.9% whereas international business +33.6%. VECV: Strong growth led by sustained momentum in domestic LMD trucks and in exports. Overall volume grew by 24.7% YoY to 10,384 units. Domestic trucks/SCVs led the growth (LMD =18.5T +22.7% at 2,622 units) offsetting the decline of -6.8% YoY in domestic Bus sales (1,647 units). Strong Exports +32.7% (650 units), Volvo T&B -28.4% YoY (207 units). FYTD YoY: Overall +13.2%, domestic +11.3% led by trucks (+14.4%, driven by SCVs), exports +51.3%. Volvo T&B -0.5%.

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