Maruti Suzuki, Hyundai, Tata Motors, M&M, TVS and other auto stocks in focus after strong October sales beat estimates

Auto Stocks In Focus: Shares of automobile companies are likely to remain in focus this week after India’s auto industry reported robust sales growth in October, driven by festive demand and improved rural sentiment.

Passenger vehicles (PVs), two-wheelers (2Ws), commercial vehicles (CVs), and tractors all registered healthy year-on-year (YoY) gains, with most automakers surpassing Zee Business estimates.

Passenger Vehicles: Strong Festive Boost

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Maruti Suzuki, Hyundai, Mahindra & Mahindra (M&M), and Tata Motors reported robust sales, reflecting improved buyer sentiment and strong festive demand. Maruti Suzuki’s total sales rose 6.8 per cent YoY to 2.2 lakh units, beating estimates of 2.14 lakh.

Production also increased by 8.5 per cent to 1.92 lakh units, indicating steady demand momentum.

Hyundai Motor’s October sales were largely steady at 69,894 units, marginally down 0.3 per cent YoY but still above estimates of 69,000 units. Tata Motors’ passenger vehicle segment continued its upward trajectory with domestic sales jumping 27 per cent YoY to 61,295 units, comfortably surpassing estimates of 56,000 units.

M&M posted an impressive performance with total auto sales up 24.3 per cent YoY to 1,20,142 units, beating estimates of 96,000 units. Its tractor division also performed strongly, rising 10 per cent YoY to 72,021 units versus an estimate of 61,100 units, reflecting sustained rural demand.

Two-Wheelers and Commercial Vehicles Stay Strong

Two-wheeler makers also rode the festive wave. TVS Motor’s total two-wheeler sales climbed 10 per cent YoY to 5.25 lakh units, while total sales rose 11 per cent to 5.43 lakh units, surpassing expectations of 5.21 lakh.

Eicher Motors delivered in line with projections, as Royal Enfield sales increased 13 per cent YoY to 1.2 lakh units, matching expectations, and its VECV division also grew 13 per cent YoY to 8,050 units.

In the commercial vehicle space, Ashok Leyland reported a 16 per cent YoY rise in total sales to 17,820 units, beating estimates of 16,500. Tata Motors’ CV division also posted solid growth, with total sales up 10 per cent YoY to 37,530 units versus an estimate of 32,000 units, driven by higher fleet demand and GST-led pre-buying.

Tractors Maintain Momentum

Escorts Kubota’s total sales grew 3.8 per cent YoY to 18,798 units, slightly above expectations of 16,250 units, as rural sentiment stayed positive.

Brokerages Remain Optimistic but Cautious

According to Bank of America (BofA), October dispatches “drove in the fast lane,” aided by festive tailwinds, with PVs and tractors performing strongly. It added that FY26 could be “a year of two halves,” with sustainability being the key factor going forward.

Jefferies echoed a similar view, noting that October was a “strong month for auto wholesales,” with PV industry volumes up 17 per cent YoY, tractors up 10 per cent, and trucks growing 8 per cent. The brokerage highlighted that retail registrations surged 52 per cent YoY for two-wheelers and 15 per cent for passenger vehicles, indicating robust underlying demand.

Overall, October marked a festive high for India’s auto sector, with most manufacturers outperforming expectations and the industry entering the second half of FY26 on a strong note.