Auto Stocks Rise as M&M Reports 25% December Sales Growth
Shares of automobile companies traded higher after several manufacturers reported strong sales numbers for December. Auto stocks rose by up to 3 percent in early trade, lifting overall sentiment in the sector. The gains were driven by optimism around sustained demand across passenger and commercial vehicle segments, despite broader market volatility.
Mahindra & Mahindra posts robust growth
Mahindra & Mahindra reported a 25 percent year on year increase in total vehicle sales for December. The company recorded total sales of over 86,000 units during the month. Domestic utility vehicle sales rose sharply, reflecting continued demand for SUVs, while commercial vehicle volumes also registered strong growth. The positive sales performance supported gains in the company’s share price and contributed to broader sectoral strength.
Broader auto sector shows resilience
Other automobile manufacturers also reported healthy December sales, indicating steady demand across both urban and rural markets. Analysts said festive season carryover demand, improved supply chains and stable financing conditions helped support sales momentum. The Nifty Auto index moved higher alongside individual stock gains, reflecting investor confidence in the sector’s near term outlook.
Outlook remains cautiously positive
Market participants said monthly sales data remains a key trigger for auto stocks. While rising input costs and interest rate trends remain factors to watch, consistent sales growth has reinforced expectations of stable earnings for major auto companies in the coming quarters.
