March Auto Sales Preview: Hero MotoCorp, Maruti Suzuki likely to lead trends; PVs may face headwinds

Indian auto sector is set to report a mixed bag for March 2025, with passenger vehicles (PVs) and two-wheelers (2Ws) witnessing sluggish demand, while commercial vehicles (CVs) and tractors see relatively better traction.
According to Zee Business research, auto sales momentum is expected to have softened in March, impacted by a number of factors including weak consumer sentiment.

Passenger vehicle sales: High discounts fail to revive demand; Maruti outperforms Hyundai, Tata Motors

Despite aggressive discounting and pre-buying before the upcoming price hikes under OBD 2B norms, PV sales remain under pressure. Inventory build-up continues, and inquiries have slowed down, especially in the mid-segment. Hyundai and Tata Motors are expected to report subdued numbers, with Hyundai’s sales estimated at 63,500 units (-3% YoY). Maruti Suzuki, however, is expected to see a moderate 4% YoY growth, touching 1,95,000 units.

Two-wheeler sales: Premium bikes thrive, scooters lead as motorcycles lag behind

The domestic 2W market is expected to experience an 11 per cent YoY drop, as soft rural demand and tighter underwriting standards weigh on retail sales. Scooters still beat motorcycles, with TVS Motor set to record an 11% YoY increase to 3,95,000 units. Royal Enfield (Eicher Motors) is set to record 92,100 units (+22% YoY), thanks to robust demand for high-end bikes.

Commercial vehicles: Tata Motors, Ashok Leyland struggle; Eicher-VECV reports strong MoM growth

CV sales are predicted to decline marginally with Tata Motors' CV business recording a 2 per cent YoY decrease to 41,600 units. Ashok Leyland's volumes are likely to be stagnant at about 22,800 units, with marginal MoM improvement (+27%). Eicher Motors' VECV business is a standalone, poised to grow 43 per cent MoM at 11,600 units.

Tractor sales: Escorts, M&M Farm ride on strong Rabi season

The tractor segment is likely to be the top performer, led by upbeat farmer sentiment and pre-buying ahead of the monsoon season. Escorts is likely to post a spectacular 30% YoY growth to 11,200 units, while M&M Farm Equipment could witness a 15 per cent increase to 30,000 units.

With the upcoming festive season and pre-buying trends before price hikes, auto sales may pick up in April. However, financing constraints, rural sentiment, and inventory levels remain key factors to watch for sustained recovery.