Automobile majors will be in focus over the next few days as they will report their sales for the month of June. These will be wholesales volumes, which effectively means sales from factory to dealers.
June is expected to be a mixed month of sales for automakers with strong growth to be seen by two-wheelers and tractor players but modest outlook for cars and trucks business.
The key companies in focus on the growth side will be TVS Motor, Eicher Motors and Mahindra & Mahindra.
Positive Sentiment For Two-Wheelers
Two-wheelers are expected to show the highest growth among auto verticals. This growth seems to be buoyed by the positive rural consumer sentiment as well as a good monsoon season.
TVS is expected to show the highest growth of 23% in June. This comes in the backdrop of scooter segment outperforming the motorcycle segment, which benefits the company led by its brands like Jupiter, and Ntorq, among others.
Both TVS and Eicher are also benefitted with the rise in the share of premium bikes. TVS recently gained the number one position in terms of market share in the 150cc-250cc segment, with a 30% market share.
Reports of mandatory ABS implementation could impact volumes by 2-4%, according to Nomura. Hero MotoCorp could be one of the companies impacted since they sell 80% of bikes in the entry level segment.
Muted Demand For Passenger Cars
Demand for passenger cars has been muted, indicated by lower enquiries and delays in conversion. New car launches have also been limited this month. According to Nuvama, discounts increased for Hyundai, M&M and Tata Motors, but they were lower in case of Maruti Suzuki vehicles.
M&M continues to outperform the industry, with likely growth in the range of mid-teens. The ramp-up of models like 3X0, Thar Roxx and its two EV models is reflecting well for the company. All other carmakers are expected to show a decline in sales.
None of the Indian suppliers have been able to secure approval to import rare earth magnets from China, which remains a concern according to Nomura.
CV Sales Under Pressure
Truck sales has been impacted due to lack of government capex last year. Selective financing by lenders has also hurt the sales of individual truck operators, further hampering demand.
On the other hand, an uptick in capex in April of over Rs 1 lakh crore was seen. This indicates at some growth for truck makers.
The e-way bill generation has also been higher than last year, which points towards better freight availability for transporters.
Brokerage firm Nuvama highlighted that inventory the stocking in May 2025, before mandatory AC implementation and reasonable levels of fleet utilisation, are restricting dispatches.
Good Monsoon To Boost Tractor Sales
Tractor makers had a strong double digit growth in the last quarter of FY25, which helped maintain that positive momentum going into FY26. The first two months of this year has shown decent growth led by good monsoon as well as a favourable base. Nomura said that positive factors such as good reservoir levels are other key factors boosting demand.
M&M is expected to continue to outshine closest listed peer Escorts, but the latter is expected to have a better show versus last year.
RECOMMENDED FOR YOU
M&M Targets Mid-To-High Teens Growth For SUV Sales In FY26
Jul 03, 2025
Oakley Meta Smart Glasses Likely To Debut On June 20: What To Expect
Jun 17, 2025
Hyundai Motor Gets UBS' 'Buy' Initiation On Capacity Expansion, Premiumisation
Jun 16, 2025
May Auto Sales Preview: TVS, Eicher, Mahindra Could Shine As Two Wheelers, Tractors To See Growth
May 31, 2025
POPULAR