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Below the Quote on Auto Sector -June 2025 Volumes by Arun Agarwal, VP-Fundamental Research, Kotak Securities

Overall demand trends were weak for the passenger vehicle and the commercial vehicle segment, whereas it was relatively better for the two-wheeler and the tractor segment. The passenger vehicle industry domestic volumes is expected to have declined by mid-high single digit led by weak retail demand and inventory correction. While most players in the passenger vehicle segment reported weak performance, M&M’s performance remained strong. Domestic commercial vehicle segment wholesale volumes declined by low single-digit in June 2025 amid subdued performance by key players.

In the two-wheeler segment, domestic volumes grew by mid-single digit whereas export volume growth remain very strong. Most of the major two-wheeler players posted overall double-digit wholesale volume growth in June 2025. Domestic tractor volumes increased by mid-high single digit yoy in June 2025 and tractor demand momentum is expected to stay positive led by early advancement of above-normal monsoon and government support. Mahindra and Mahindra, TVS Motors and Eicher Motors (Royal Enfield) reported strong volume growth in June 2025.