Sector Update | 27 November 2025
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Automobiles
Domestic 2W ICE sales grew 1.5% YoY in Oct’25. However, on a YTD basis, they
were flat YoY, largely due to the weak offtake in 1Q.
In motorcycles, on a YTD basis, outperformers included RE (+24.5%) and TVS
(+9.5%).
On a YTD basis, in motorcycles, the >250cc and 150-250cc segments posted
volume growth, while the remaining segments posted a decline. Within the
125cc segment, only HMSI delivered growth, while all other players witnessed a
decline. In the 100cc segment, overall volumes declined ~6% YoY, with all major
players posting a volume decline.
In scooters, TVS significantly outperformed peers and the industry growth rate
of 5.6%, posting YTD volume growth of 24% YoY.
In PVs, the segment witnessed 17% YoY growth in Oct’25, with growth led by all
segments, including cars. YTD growth in PVs, however, was much lower at 1.5%.
Within UVs, MM (+17%), Kia (+7%), and Toyota (+18%) outperformed peers.
Our top OEM picks are MSIL, MM, and TVSL.
PV demand remains healthy in October
Two-wheeler wholesales seem to have moderated
ICE 2Ws: TVS continues to outperform in 2Ws
Domestic 2W ICE sales grew 1.5% YoY in Oct’25. However, on a YTD basis, they
were flat YoY, largely due to the weak offtake in 1Q.
On a YTD basis, motorcycle volumes declined 2.4% and mopeds dipped 6.4%,
while scooters posted 5.6% growth.
On a YTD basis, among the top four players, TVS is the only one to gain a 220bp
share to 18.9%.
On the other hand, both HMCL and HMSI lost ~130bp share on a YTD basis.
Segmental trends: Motorcycles down 2% and scooters up 6% YTD
Motorcycle segment:
Domestic motorcycle sales declined 4% YoY in Oct’25 and 2.4% YoY on a YTD
basis.
On a YTD basis, outperformers included RE (+24.5%) and TVS (+9.5%).
On the other hand, BJAUT/HMCL/HMSI declined 6.1%/5.6%/4.6% YoY.
As a result, HMCL’s market share declined 140bp YoY to 41.8%. Additionally,
HMSI saw a 45bp decline in share to 19.4%, while BJAUT saw a 60bp decline to
16.3% on a YTD basis.
Meanwhile, TVS gained a 120bp share YoY to 11.2%, while RE gained a 180bp
share to 8.4%.
Aniket Mhatre - Research Analyst
(Aniket.Mhatre@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
24 June 2024
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Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.