Shares of Indian auto companies rose in early January trading as several automakers released December 2025 sales figures, boosting investor sentiment. The Nifty Auto index climbed over 0.7% to 28,396.30, extending gains for the third consecutive session.
Key stock movements:
- Ashok Leyland surged 2.5% to Rs 183.66, topping the index. The company is yet to release its monthly sales data.
- Mahindra & Mahindra (M&M) shares gained 1% to Rs 3,755.80 after reporting 86,090 units sold in December, a 25% YoY increase. SUV sales grew 23% to 50,946 units, while commercial vehicles rose 34% YoY to 24,786 units. CEO Nalinikanth Gollagunta noted it was M&M’s highest-ever volumes in SUVs and LCVs (<3.5T).
- TVS Motor Company and Tube Investments of India gained over 1%.
- Marginal gains were seen in Tata Motors PV, Maruti Suzuki, Samvardhana Motherson, Bajaj Auto, Bharat Forge, and Exide Industries.
- Eicher Motors, Hero MotoCorp, Bosch, and Sona BLW Precision Forgings traded in the red.
Other highlights:
- Escorts Kubota shares jumped over 3% to Rs 3,850, highest in a month, after reporting 38.5% YoY growth in total sales. Domestic tractor sales rose 36.1%, while exports surged 64.3%.
The positive momentum in auto stocks comes amid policy support, such as SUV tax cuts in India in September 2025, which lowered the levy for engines above 1,500cc from ~50% to 40%, boosting demand for Mahindra SUVs.
