Auto stocks shine on upbeat December sales; Eicher Motors hits record high
Total tractor sales (domestic + exports) increased 19.9 per cent at 22943 units in the last month, as against 19,138 units for the same period last year.
India's automobile sector saw strong buying momentum on Thursday, as better-than-expected December sales boosted stocks across the board. Key players like Eicher Motors, Maruti Suzuki, Ashok Leyland, and Mahindra & Mahindra (M&M) surged up to 5 per cent in intra-day trade.
Eicher Motors leads with record sales and stock high
Eicher Motors' shares soared nearly 7 per cent, hitting a record high of Rs 5,227. The company reported a 25 per cent year-on-year (YoY) growth in Royal Enfield (RE) motorcycle sales, reaching 79,466 units in December. International sales led the charge, rising 90 per cent YoY to 17,575 units.
The company attributed its strong performance to category-defining launches, including the Classic 650 and Bear 650, alongside the Flying Flea electric vehicle (EV) debut. Eicher is also expanding its footprint, with new assembly plants in Thailand and Brazil planned to bolster international sales.
Auto sector indices on the rise
The Nifty Auto and BSE Auto indices climbed 2 per cent, outperforming the broader markets, which saw the Nifty 50 and Sensex rise by 0.9 per cent. The auto index has rallied 3 per cent over the past two days after underperforming in December with a 2.3 per cent decline.
Maruti Suzuki and Ashok Leyland impress
Maruti Suzuki reported a 29.6 per cent YoY rise in total sales to 178,248 units in December, with exports hitting an all-time high of 37,419 units, up 39 per cent YoY. Similarly, Ashok Leyland posted a 5 per cent YoY increase in total sales, driven by an 11 per cent rise in medium and heavy commercial vehicle (M&HCV) sales.
Positive outlook for 2025
Eicher Motors and other automakers remain optimistic about sustaining their growth momentum. Expanding export markets and favourable agricultural sentiments are expected to drive the sector further. M&M, for example, reported a 20 per cent YoY growth in tractor sales, supported by robust demand stemming from strong Rabi sowing and positive Kharif harvest cash flows.
With government capex, rising exports, and new launches, the sector is poised for further growth in 2025.
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