April Auto Sales Preview: Domestic Slowdown Likely To Hurt Hero MotoCorp; M&M Seen Strong
Brokerages are estimating SUV and CNG models to support carmakers' sales, but discounts would have driven this growth.
Automakers will report their sales for the month of April starting Thursday, May 1, and there are multiple key things to note. Domestic two-wheeler sales were down this month and the impact of this is likely to be felt by Hero MotoCorp Ltd., which is expected to report a high-single to low-double digit decline.
Brokerages are estimating SUV and CNG models to support carmakers' sales, but discounts would have driven this growth. Mahindra & Mahindra Ltd. could emerge as a key gainer.
Two-Wheeler Sales Under Pressure
The two-wheeler segment continues to log a decrease due to muted sentiments and inventory correction with dealers. There is a persistent weakness seen in motorcycle segment and that’s affected players like Bajaj Auto Ltd. and Hero MotoCorp.
Growth in scooter sales should aid growth for TVS Motor Co. while momentum in export market will benefit both Eicher Motors Ltd. and TVS.
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Passenger Cars: SUVs Aid Growth, M&M Marches On
An increase in passenger vehicle sales owing to growth in the SUV and CNG segments is a visible trend in this month’s auto sales. M&M continues its outperformance in the industry led by increased demand for its products. The automaker is also expected to report quarterly result on May 5, and some update on bookings of XEV 9e and BE6 will be a key monitorable.
Brokerages also pencil in growth led by by increase in discounts. Maruti Suzuki Ltd. is expected to see low-single digit growth. On April 25, the company reported in its fourth quarter earnings that its inventory stands at 28 days, lower than the industry average.
Hyundai Motors India Ltd. and Tata Motors Ltd. are expected to report low single digit decline.
CV: Slow Start to FY26
Due to lack of government spending, a slow growth was seen for truck makers. While signs of some spending is visible in this segment, that has not translated in sales yet. E-Way Bill generation has been higher than last year, indicating better freight availability for transporters.
VE Commercial Vehicles is expected to show some growth and trends for bus segment growth will be a key monitorable.
Tractors: Sentiment Remains Strong
Tractors are expected to grow in low single digits, which is lower than the March 2025 growth of 24%. This is likely because the festive period of Gudi Padwa and Chaitra Navratri commenced early this year. Despite that, the growth momentum is expected to be stronger than last year.
Largely, the sentiment is positive for the Rabi season.
