Amidst the GST led momentum and quarterly earnings season, the give attention to January Auto gross sales will get diverted, however automakers are anticipated to report a powerful present. Whereas GST fee cuts was a key set off for patrons who’ve been on the sidelines for some time now, we now perceive this can be a structural change and seller channel verify counsel the identical.
Brokerages even have put robust estimates for the month of January and counsel a number of winners this time round as effectively, a pattern we’ve got seen previously couple of months as effectively. Amongst some key winners and gainers, Tata Motors, TVS, Ashok Leyland will likely be some you need to be careful for.
Two Wheelers: Affordability And Premiumization Traits Additional Underpin Demand
Two wheeler demand particularly for the entry stage section was on the sidelines pre GST Price cuts led by price will increase over previous few years. Progress pattern has been fairly robust in January with Hero being a key beneficiary. Pattern appears structural and optimistic for the trade. Premiumization throughout class has been seen however not as stark as inside two wheelers the place beneficiaries have been throughout gamers.
TVS being essentially the most diverisified participant throughout bikes and scooters is anticipated to indicate a 26% year-on-year progress adopted by Eicher Motors. In line with brokerage agency Nuvama, exports would enhance in double digits led by progress in Asia, Africa and Latin America, a pattern benefitting Royal Enfield maker Eicher Motors, Bajaj and TVS.
PV: New Mannequin Launches Take Centre Stage
After nearly a yr of no new mannequin launches from finish of 2024 until August 2025, carmakers have had their say in the previous few months. Tata Sierra, Mahindra 9S & XUV 7XO, New Renault Duster, Hyundai Venue, Maruti Victoris have proven as shiny because the Diwali lights and captured each purchaser curiosity and wholesome reserving numbers.
From nearly 75000 bookings every for Tatat Sierra and Maruti Victoris, Mahindra secured over 93,000 bookings for the 9S,7XO mixed reveals you the structural demand is again and visual in January gross sales numbers. Whereas chatting with The Press Reporter Revenue put up Quarter 3 earnings, Rahul Bharti, Government Director on the firm confirmed that 35,000 Victoris have already been delivered.
Sierra push is anticipated to assist Tata Motors outperform friends with 27% yr on yr progress, others are anticipated to indicate progress as effectively.
CV: Early Phases Of The Begin Of An Upcycle
Whereas there are not any indicators of a upcycle beginning already in truck gross sales, the numbers would present you in any other case, particularly within the final quarter. Whereas there hasn’t been a giant capex push from the federal government which is a key indicator for enhance in truck gross sales, month-to-month numbers appear to counsel GST profit has helped truck gross sales as effectively, particularly for Mild Business Autos. This has helped inventory costs of Ashok Leyland and Tata Motors Ltd, with 39% and 40% up respectively.
As soon as there is a sign and quarterly earnings convention calls will assist with these, you could possibly see the MHCV or Medium And Heavy Business Autos gross sales decide up meaningfully as effectively for truck makers. Anticipate a 20% progress for January throughout gamers.
Tractors: GST Cuts, Progress Tnto Rabi Season To Proceed Progress Momentum
Tractor makers had their say in 2025 crossing the 1 million sale mark for the primary time in a yr and 2026 is anticipated to be a powerful begin but once more. Momentum is anticipated to proceed with 15-20% YoY progress for Escorts and Mahindra.
Brokerage agency Nomura means that tractor demand sentiment continues to be robust, supported by GST cuts and demand will stay wholesome for the remainder of the yr as we progress into the rabi season, supported by improved reservoir ranges, and higher farm money move.
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