Auto industry set for double-digit growth across segments in November: Report

Passenger vehicle volumes are projected to rise 13 per cent year-on-year, aided by GST cuts, financing availability and rural demand, along with support from new model launches.

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India’s automobile industry is poised to deliver double-digit year-on-year growth across two-wheelers, passenger vehicles and commercial vehicles in November 2025, supported by strong consumer sentiment and improved affordability following recent GST cuts, according to a report by Nuvama.

“Sales volumes are likely to be driven by continued positive customer sentiment spurred by better affordability, strong rural demand, interest rate cuts and adequate finance availability,” the brokerage said.

Growth across segments

Two-wheeler makers are expected to lead the momentum, with Hero MotoCorp, Eicher Motors’ Royal Enfield and TVS Motor Company projected to outperform peers. Nuvama estimates domestic two-wheeler sales to grow around 15 per cent year-on-year, buoyed by robust rural sentiment and healthy cash flows during the marriage season. Exports are also expected to rise in double digits on the back of strong demand from Asia, Africa and Latin America.

Hero MotoCorp’s volumes are projected to grow 32 per cent year-on-year to 6.05 lakh units, Eicher-RE to 1.05 lakh units (up 28 per cent), TVS Motor to 4.75 lakh units (up 18 per cent), while Bajaj Auto may see a modest 4 per cent rise to 4.4 lakh units.

CV’s double digit growth

The commercial vehicle segment is expected to grow around 15 per cent year-on-year, driven by GST cuts, stronger freight movement from rising consumption, and stable financing conditions. Exports, particularly to Asian markets, are also likely to support growth momentum. Ashok Leyland’s volumes are estimated at 16,700 units (up 18 per cent), Tata Motors CV at 32,500 units (up 18 per cent), and Eicher Motors’ VECV division at 6,500 units (up 17 per cent).

PV’s rapid surge

Passenger vehicle volumes are projected to rise 13 per cent year-on-year, aided by GST cuts, financing availability and rural demand, along with support from new model launches. The report also noted a slight month-on-month increase in discount levels. Mahindra & Mahindra’s total volumes across PV, CV and three-wheelers are expected to grow 18 per cent to 93,000 units, while Tata Motors – PV may rise 18 per cent to 55,500 units. Maruti Suzuki India Ltd is projected to grow 16 per cent to 2.1 lakh units, and Hyundai Motor India is expected to record a 9 per cent rise to 67,000 units.

Automotive segment to be in demand

The tractor segment is likely to see high single-digit growth of around 7 per cent year-on-year, supported by healthy crop cash flows and improved farmer sentiment following GST cuts, although input costs remain elevated. Mahindra Farm Equipment and Escorts (including Kubota) are each expected to grow 6 per cent, to 35,400 units and 9,500 units, respectively.

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