Maruti Suzuki Leads Nifty Auto to Record High

Even after the holiday season, demand for cars remained strong in December, as seen by strong wholesale volumes across all categories, which kept vehicle stocks moving at full speed.

Nifty Auto Index Hits Record High on Strong Auto Demand

With a 1.3% increase in Monday’s session (January 5), the Nifty Auto index reached yet another new high of 29,179, marking its fifth consecutive session of advances and a total increase of 5.75%.

Among individual equities, Maruti Suzuki, UNO Minda, TVS Motor Company, Hero MotoCorp, and Bajaj Auto were all trading with increases of more than 1%, while Eicher Motors’ share price jumped 2% to the day’s high of ₹7,477 per share.

Auto Stocks Rally India on Robust December Volumes

With continued demand, increased discounts, and GST rationalization, all listed OEMs reported robust wholesale growth in December, with the majority reporting double-digit expansion. This helped the domestic car sector end the year on a positive note.

More significantly, after GST rationalization, demand for entry-level cars increased for both passenger cars (PVs) and two-wheelers (2Ws), making these models more accessible to consumers on a tight budget.

Two-Wheelers and Passenger Vehicles Show Broad-Based Growth

Domestic wholesales at Hero MotoCorp, Bajaj Auto, TVS Motor Company, and Royal Enfield increased by 43%, 4%, 54%, and 30% year over year. Maruti Suzuki, Mahindra & Mahindra, Tata Motors Passenger Vehicles, and Hyundai Motor India domestic PV wholesale rose 37%, 23%, 14%, and flat year over year, respectively, in the PV category.

The aggregate volume rise for all listed OEMs in the December quarter was 17% year over year, according to trading company Motilal Oswal. Notably, increase was widespread, with tractors up 21% YoY, commercial vehicles (CVs) up 22% YoY, and 2Ws and PVs up 17% YoY each.

Commercial Vehicles and Tractors Add Strength to Auto Stocks Rally

TVS Motor (+27%) and Royal Enfield (+21%) continued to propel growth in two-wheelers. While Bajaj Auto’s sales increased by 10%, Hero MotoCorp’s volumes increased by 13%. The other three mentioned OEMs reported strong double-digit increase in passenger cars, with the exception of Hyundai Motor India.

The fact that all three CV OEMs reported growth of more than 20% in the third quarter has been a major highlight. Additionally, the brokerage said that although Mahindra & Mahindra had a 23% YoY increase in tractor shipments, Escorts’ volumes increased by 14% YoY.

Brokerages Remain Positive on Sustained Demand Momentum

The GST rationalization, the impending marriage season (February 2026), and the recent establishment of the 8th Pay Commission have all contributed to the brokerage business JM Financial’s ongoing strong customer mood. Demand momentum is anticipated to be supported by these factors, especially for entry-level domestic passenger vehicles (PVs) and two-wheelers (2Ws).

The demand for commercial vehicles (CVs) is probably going to continue to grow due to increased government capital expenditures and better infrastructure. Demand has increased across all categories after GST rationalization, according to Motilal Oswal, and it seems to have held steady even after the holiday.

Conclusion

The auto stocks rally in India reflects strong December auto sales India data, resilient consumer demand, and supportive policy measures, keeping the Nifty Auto index at a record high and boosting Maruti Suzuki share price along with other OEMs.

Disclaimer

This article is for informational purposes only. It does not constitute investment advice. Readers should consult a qualified financial advisor before making any investment decisions.