Why Are September Auto Sales Showing Strong Growth Across Segments?
September 2025 is shaping up as a positive month for India’s automobile industry, with wholesales across tractors, two-wheelers, passenger vehicles (PVs), and commercial vehicles (CVs) expected to record healthy year-on-year growth. Brokerage firm Nuvama has highlighted multiple demand drivers, including GST cuts, stronger rural sentiment, and improving financing availability, all of which are fueling sector-wide recovery. The brokerage has also reiterated its positive stance on leading OEMs with fresh target prices.
About the Indian Auto Sector
The auto sector is often viewed as a barometer of India’s economic health, reflecting trends in consumer demand, rural prosperity, infrastructure investments, and financing liquidity. After a patchy FY24 marked by uneven rural demand and cost pressures, FY25 is seeing improving fundamentals. With policy support such as GST rationalization and improved rural cash flows, the sector appears poised for broad-based growth across categories.
September Wholesales: Growth Drivers
Nuvama projects strong wholesales in September across all key segments. Tractor demand has benefitted from farm cash flows and GST cuts, while two-wheelers (2Ws) are witnessing a pick-up led by models from Eicher-RE and TVS Motor. Passenger vehicle (PV) sales remain healthy, especially for Mahindra & Mahindra (M&M), which continues to ride on SUV strength. Commercial vehicles (CVs) also show resilience thanks to infra spending and fleet replacement cycles.
Stock-Specific Views from Nuvama
Nuvama has laid out its top picks in the sector, assigning bullish targets across leading OEMs, while maintaining a cautious stance on a few select names. The brokerage’s target prices reflect confidence in demand sustainability and earnings growth potential.
| Company | Focus Area | Target Price | View |
|---|---|---|---|
| Maruti Suzuki | Passenger Vehicles | ₹18,200 | Buy |
| TVS Motor | Two-Wheelers | ₹4,100 | Buy |
| M&M | Tractors & SUVs | ₹4,200 | Buy |
| Hero MotoCorp | Two-Wheelers | ₹6,200 | Buy |
| Eicher Motors | Royal Enfield | ₹6,900 | Hold |
Leaders in Each Segment
According to Nuvama, Eicher-RE and TVS Motor are expected to lead the two-wheeler recovery, while M&M continues to dominate in both tractors and SUVs. Maruti Suzuki remains the bellwether for PVs, while Hero MotoCorp is expected to benefit from rural demand resurgence.
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Investor Takeaway
Nuvama’s analysis underscores the broad-based revival in India’s auto sector, with tractors, two-wheelers, PVs, and CVs all benefitting from supportive demand drivers. The brokerage’s top picks — Maruti, TVS, M&M, and Hero MotoCorp — reflect confidence in strong volume recovery and earnings visibility. While Eicher is rated Hold, its niche position in premium motorcycles ensures continued relevance. Investors should watch how festive demand sustains momentum in the coming months.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
