With more funds available, consumers may be more inclined to invest in high-value items such as automobiles, driving higher vehicles demand.Maruti Suzuki shares jumped nearly 7% after the company reported its highest-ever monthly sales of 2,12,251 units in January 2025, up from 1,99,364 units in the same month last year. This included record domestic sales of 1,77,688 units, 7,463 units sold to other OEMs, and exports of 27,100 units.
Mahindra & Mahindra shares rose 2.3% after reporting total auto sales of 85,432 units, a 16% YoY growth, including exports.
M&M's passenger vehicle sales grew 18% to 50,659 units from 43,068 units YoY, while exports surged 95% to 3,404 units from 1,746 units. The company's total tractor sales, including domestic and exports, stood at 27,557 units in January 2025, up from 23,948 units last year, with exports at 1,252 units.
Hyundai Motor India shares also surged over 2% after the company reported total sales of 65,603 units in January 2025, including 54,003 domestic sales and 11,600 exports.
In Q3 FY25, Hyundai Motor reported a 19% YoY decline in its December quarter consolidated net profit, which stood at Rs 1,161 crore, compared to Rs 1,425 crore in the same period last year. Revenue from operations for the Korean carmaker, known for models like the Creta SUV and Grand i10 and i20 hatchbacks, declined 1.3% to Rs 16,648 crore from Rs 16,875 crore in Q3 FY24.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced an income tax exemption for individuals earning up to Rs 12 lakh annually, which could positively impact the automotive sector. This move would increase the disposable income of middle-class consumers, potentially boosting their purchasing power. With more funds available, consumers may be more inclined to invest in high-value items such as automobiles, driving higher vehicles demand.
