Auto Sector Update: Key Insights on Market Movements and February Sales Data

Market Overview

In February, the Nifty Auto Index declined nearly 11%, outpacing the approximate 6% drop observed in the Nifty 50 benchmark index. The auto sector has been facing significant challenges recently, with declines driven by foreign capital outflows, currency pressures, and indications of a slowing economy.

Several major auto stocks, including Hero MotoCorp, Mahindra & Mahindra (M&M), Bajaj Auto, TVS Motor, Tata Motors, and Eicher Motors, recorded losses of around 11% to 16% over the past month. From its peak of 27,696, the Nifty Auto Index has dropped by approximately 26%, whereas the Nifty 50 has fallen around 16% from its high.

February Auto Sales Performance

February's vehicle sales figures from major automakers provide insight into current demand trends within the industry:

Maruti Suzuki India (MSI)

• Domestic Passenger Vehicle Sales: 1,60,791 units, reflecting a marginal increase compared to 1,60,271 units in the same month of the previous year.

Hyundai Motor India

• Domestic Sales: 47,727 units, a 5% decline from 50,201 units in February 2024.

Tata Motors

• Domestic Passenger Vehicle Sales (including EVs): 46,435 units, registering a 9% decrease from 51,267 units in the year-ago period.

Mahindra & Mahindra (M&M)

• Utility Vehicle Sales (Domestic): 50,420 units, a 19% increase from 42,401 units in February last year.
• Total Automobile Sales: 83,702 units, showing a 14.8% growth compared to the previous year.
• Passenger Vehicle Sales: Up by 19% year-on-year.
• Exports: Increased to 3,061 units, nearly doubling from the prior year.
• Tractor Sales: Rose by 18% to 25,527 units.

Ashok Leyland

• Total Sales: 17,903 units, showing a 2% year-on-year growth.

TVS Motor

• Total Sales: 4.03 lakh units, an increase of 10% compared to the previous year.
• Electric Vehicle (EV) Sales: Up 34%.
• Exports: Grew by 26%.

Eicher Motors

• Royal Enfield Sales: 90,670 units, rising by 19.4% year-on-year.
• Exports: Improved by 23.2%.

Ola Electric Technologies Ltd.

• Monthly Registrations: Dropped to a near three-year low in February.

Company-Specific Details

Maruti Suzuki India (MSI)

Maruti Suzuki reported stable domestic passenger vehicle sales with minimal growth over the previous year.

Mahindra & Mahindra (M&M)

M&M recorded strong growth across utility vehicles, total automobile sales, tractor sales, and notable gains in exports. The company also experienced high booking levels for newly launched electric vehicle models.

Tata Motors

Tata Motors experienced a year-on-year decline in its domestic passenger vehicle sales, including electric vehicles.

Hyundai Motor India

Hyundai's domestic sales reflected a moderate decrease compared to the previous year.

TVS Motor

TVS Motor observed solid growth in overall sales, which was led by significant increases in electric vehicle sales and exports.

Eicher Motors

Eicher Motors benefited from increased Royal Enfield sales and more substantial export figures.

Ashok Leyland

Ashok Leyland recorded a slight uptick in total sales during February.

Ola Electric Technologies Ltd.

Ola Electric's registrations in February were at their lowest levels in nearly three years.

Summary

The auto sector's February performance reveals mixed outcomes across leading manufacturers. While companies like Mahindra & Mahindra, TVS Motor, Eicher Motors, and Ashok Leyland reported positive sales growth, others, such as Tata Motors, Hyundai Motor India, Maruti Suzuki, and Ola Electric Technologies Ltd., faced declines in their monthly figures.

The varied performance among auto companies highlights the shifting dynamics within the sector. Export growth, electric vehicle adoption, and product diversification contributed to the differing sales trends in February.