Auto Stocks in Gear: Forecasting India's Automobile Sector Growth for 2025 Part 1

Sector-Wide Growth Projections Domestic auto sector expected to grow 5–8% YoY in FY26 due to base effect and slower urban consumption. Source: Business Today Passenger vehicle segment may grow 2–5% YoY, with utility vehicles continuing to dominate. Source: Business Today Two-wheeler sales projected to grow 6–8% YoY, aided by rural demand and premiumisation. Source: Business Today Commercial vehicle segment to grow by 1–4% due to post-election infrastructure push. Source: Business Today Company-Specific Performance and Strategies Maruti Suzuki Market share dropped from 50% to 41%, but company aims to regain share via rural and export focus. Source: Financial Times Suzuki plans to invest $8.5 billion in EV and production infrastructure in India. Source: Financial Times Mahindra & Mahindra Expected to outperform overall sector, driven by new SUV and EV launches. Source: MarketWatch Production capacity expansion from 42,000 to 72,000 units per month planned by 2026. Source: MarketWatch Tata Motors Stock declined 10% due to JLR halting exports to the U.S. amidst tariff changes. Source: Reuters Analysts still maintain "buy" rating expecting long-term recovery. Source: Reuters