February sales data had a positive impact on shares of TVS Motor, Eicher Motors, and Mahindra & Mahindra on Monday, while Bajaj Auto, Ashok Leyland, Hero Motocorp, and Maruti Suzuki saw a decline.
Despite a weakened market sentiment, the auto sector showed resilience. The Nifty auto index ended at 20,538.15, up 0.19%, despite facing challenges such as weak demand, continued selloff, and potential competition from Tesla’s entry into the market.
Analysts noted a broader slowdown in demand across segments, with tractor volumes being the exception. While passenger vehicles (PVs) and commercial vehicles (CVs) remained in line with expectations, tractor volumes exceeded estimates. Companies like Royal Enfield, Escorts Kubota, and M&M tractors performed better than expected.
Mahindra & Mahindra stood out with a 15% growth in overall auto sales in February 2025, reaching 83,702 units.
On the other hand, both Bajaj Auto and Ashok Leyland recorded a 2% increase in total sales in February 2025. Bajaj Auto saw a decline of 11% in domestic sales, while exports rose by 2%.
Hero Motorcorp experienced a 17% decrease in sales, with Tata Motors also recording an 8% year-on-year decline to 79,344 units.
In terms of top picks by brokerages, Maruti Suzuki India was highlighted as the favorite in the passenger vehicles (PVs) space, selling 1,99,400 units in February, a slight increase of 0.97%. Brokerages also favored Mahindra & Mahindra for the upcycle in tractors and healthy growth in utility vehicles (UVs).
Emkay Global analysts recommended TVS Motor Company and Eicher Motors in the two-wheelers segment, along with Escorts in tractors. They mentioned that TVS and Eicher continue to gain market share through strong product offerings and pricing discipline, while exports are expected to improve as macro challenges ease.
In the broader market, the Sensex closed down 112 points at 73,085.94, while the Nifty remained flat at 22,119.30. Among auto stocks, TVS Motor led the gains with a 4.79% increase, followed by Eicher Motors with a 2.94% gain, and M&M with a 1.04% increase. Escorts Kubota shares ended 2.90% higher, while Tata Motors closed flat. On the losing side, Bajaj Auto, Ashok Leyland, Hero Motocorp, and Maruti Suzuki saw declines.
The article was published on March 3, 2025.
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