Revving Up: Indian Auto Sector Accelerates into December

The Indian automobile industry is set for significant growth as December sales are expected to rise across vehicle categories. Driven by favorable market conditions and strong domestic demand, two-wheelers, passenger cars, and commercial vehicles are anticipating double-digit increases. Key players like TVS Motor and Mahindra are poised to lead the charge.

The Indian automobile sector is set for substantial growth, with a significant rise in sales volumes anticipated for December across all vehicle categories. The Nuvama Institutional Equities report highlights potential double-digit growth in the domestic markets for two-wheelers, passenger cars, and commercial vehicles, spurred by improved affordability and favorable economic conditions.

Despite some financial pressures on rural buyers from falling crop prices, the general outlook remains optimistic. The two-wheeler segment is projected to see a 22% increase in domestic sales compared to last year, driven by TVS Motor's expected 29% growth to 415,000 units. Eicher's Royal Enfield and Hero MotoCorp are also expected to witness significant growth of 26% and 23%, respectively.

The passenger vehicle market is forecasted to experience a 21% rise in domestic sales, with Mahindra & Mahindra and Maruti Suzuki outperforming their peers. Mahindra's growth is forecasted at 29% to 90,000 units, while Maruti Suzuki anticipates a 23% rise to 220,000 units. Commercial vehicles are set to grow by 17%, supported by increased freight availability and a shift to new vehicle purchases. Tractor sales are anticipated to rise by 14%, reflecting improved affordability. Overall, the sector maintains a positive outlook buoyed by rising exports to Asia, Africa, and Latin America.

(With inputs from agencies.)