Auto Q1 Preview: Tepid Quarter For Hyundai, Maruti, Tata Motors; Profits Expected To Fall 11–29%
M&M is expected to log 26% growth in revenue, whereas the rest of the key automobile players are likely to post single-digit revenue fall.
Some of the top carmakers in the Indian market will be in focus over the coming days, as they will post their earnings for the April-June period. Hyundai Motor will be the first to post its quarterly scorecard, with its results scheduled to be declared on Wednesday.
This will be followed by Mahindra and Mahindra and Maruti Suzuki, who will declare their quarterly results on July 31. While M&M will continue to show strong growth in revenue and profit led by volume growth, the same won’t be the picture for the other carmakers.
Barring M&M, profits are expected to fall to the tune of 11-29% for Hyundai, Maruti and Tata Motors, reflecting the pressure in the auto industry. Tata Motors' earnings are likely to be hit due to the impact of US tariffs on its Jaguar Land Rover business.
Let’s take a deeper look at the challenges faced by these automobile players:
Industry Players Under Pressure
Sales have been impacted this quarter and that is one of the key reasons for the weak financial numbers. For Hyundai, sales are down 6% YoY, while Tata Motors sales are down 10% in the domestic market. On the other hand, M&M continues to show stellar growth of 22% led by Thar Roxx and XUV 3XO. Maruti has shown 1% volume growth in this quarter.
Industry Body SIAM has also projected just 1-2% growth for FY26, and at least for the first quarter, the pressure on growth is seen despite a decent wedding season in May and June.
In terms of key financial numbers, M&M is expected to show 26% growth in revenue with profit expected to rise 16%. Rest of the players are expected to show single digit revenue fall.
For Tata Motors, there is a global impact of US tariffs on its JLR division as well. While the US-EU trade deal signing is a relief, an adverse impact of tariffs is likely to reflect in the June quarter earnings.
Tata Motors manufactures the Defender model in its Slovakia factory which had tariffs of almost 27% vs 2.5% earlier. Profit is expected to tank 29% this quarter, and going ahead, the US-EU trade deal would be key to offer relief.
Looking Ahead
The carmakers' commentary on Q2 in terms of sales performance will be one of the key aspects to watchout for.
The expectations of new car launches in the next few months, including the EV launch from Maruti, will be in focus.
The July sales data, which will be released starting Aug. 1, will also be keenly observed. The performance of carmakers in the upcoming quarters will also depend on the demand during the festive season.
