May Auto Sales Preview: TVS, Eicher, Mahindra Could Shine As Two Wheelers, Tractors To See Growth

Auto sales largely saw continued momentum in May and growth in segments like two-wheelers and tractors. Scooter sales have been outperforming motorcycles and that will augur well for TVS Motor Co.

Decent growth is also expected from Mahindra & Mahindra Ltd. and Eicher Motors Ltd.

The momentum in two-wheelers has been strong in FY25, but some slowdown in domestic motorcycles has started to creep up. Hero and Bajaj Auto Ltd. were impacted due to that.

But growth in two wheeler space will likely be driven by Royal Enfield maker Eicher Motors and TVS Motor in May. Scooter sales have been outperforming motorcycle growth over the past few months and TVS is one of the key beneficiary of this trend. Its brands, like Jupiter, NTORQ and I-Qube on the electric side, have helped sales growth.

Eicher Motors had a change in strategy to focus more on sales rather than Ebitda margin. This has helped achieve consistent sales of 80,000 units per month.

PV sales growth could be lower in May, owing to weak customer sentiments, especially in urban areas. Car sales have been tepid in 2025, except for M&M, which saw 20% growth. The Thar-maker started off this year with growth in double digits and is expected to show a 13% growth in May. The incremental growth tailwind is coming from newly launched EV models BE6 and XEV 9e.

For Tata Motors and Hyundai, May is expected to be another month of slower sales year-on-year. Discounts for Hyundai and Tata Motors have increased YoY, while they reduced for Maruti Suzuki India Ltd. and M&M, according to Nuvama.

Retail demand trend has slowed and channel inventory has likely gone up, according to the brokerage.

Truck sales were impacted last year due to lower capex spends by governments, impacted by elections. While the capex hasn’t picked up meaningfully yet, there are a few positive signs. E-way bill generation has been higher than last year, indicating better freight availability for transporters.

Selective financing by lenders and reasonable levels of fleet utilisation are limiting new vehicle additions and hence for a meaningful jump, the capex from government will need to increase substantially.

VECV, the commercial vehicle arm of Eicher Motors, is expected to show mid single digit growth, which is expected to be the highest among listed peers. Buses could drive growth for Ashok Leyland Ltd.

Tractor companies had a strong end to FY25. M&M largely continued to grow, led by higher growth in western region of Maharashtra and Karnataka. May is expected to show 4-8% growth for listed tractor players.

Customer sentiment, a favourable base and farmer sentiment is positive owing to anticipation of a good monsoon.