(MENAFN- KNN India) New Delhi, Dec 1 (KNN) India's automobile sector is set to post strong double-digit year-on-year growth across major categories in November 2025, supported by firm consumer sentiment, improved affordability after recent GST reductions and favourable financing conditions, according to brokerage Nuvama.

“Sales volumes are likely to be driven by continued positive customer sentiment spurred by better affordability, strong rural demand, interest rate cuts and adequate finance availability,” the report said.

Two-wheelers are expected to lead the industry's momentum. Nuvama forecasts domestic sales to rise around 15 per cent year-on-year, supported by robust rural sentiment, improved liquidity during the marriage season and strong export demand from Asia, Africa and Latin America.

Hero MotoCorp's volumes are projected to grow 32 per cent to 6.05 lakh units, Royal Enfield's sales to increase 28 per cent to 1.05 lakh units, and TVS Motors to expand 18 per cent to 4.75 lakh units. Bajaj Auto is expected to see a more moderate 4 per cent rise to 4.4 lakh units.

The commercial vehicle (CV) segment is also likely to record about 15 per cent growth, driven by GST cuts, rising freight movement on the back of higher consumption and stable financing conditions.

Exports to Asian markets are expected to add further support. Ashok Leyland's volumes are estimated at 16,700 units (up 18 per cent), Tata Motors' CV sales at 32,500 units (up 18 per cent) and Eicher Motors' VECV division at 6,500 units (up 17 per cent).

Passenger vehicle (PV) sales are projected to rise 13 per cent year-on-year, aided by GST reductions, easy credit availability, rural demand and recent model launches. Discount levels saw a mild month-on-month uptick, the report noted.

Mahindra & Mahindra's combined PV, CV and three-wheeler volumes are expected to grow 18 per cent to 93,000 units, while Tata Motors' passenger vehicle sales may rise 18 per cent to 55,500 units. Maruti Suzuki's volumes are projected to increase 16 per cent to 2.1 lakh units, and Hyundai Motor India's sales are expected to grow 9 per cent to 67,000 units.

The tractor segment is likely to register high single-digit growth of about 7 per cent year-on-year. Improved crop cash flows and stronger farmer sentiment following GST cuts are expected to support demand, though elevated input costs remain a constraint.

Mahindra Farm Equipment and Escorts (including Kubota) are each projected to grow 6 per cent, with estimated sales of 35,400 units and 9,500 units respectively.

(KNN Bureau)

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