{
}
Automobile sales faced challenges in the first half of FY2025 due to elections and adverse weather, with November data revealing disappointing single-digit year-on-year growth across all vehicle categories. While Tata Motors struggled, market leaders Maruti Suzuki, Hyundai, and Mahindra & Mahindra reported approximately 10% growth in wholesale dispatches.
Benchmark indices Nifty and Sensex rebounded in the afternoon on December 2, with Nifty rising to 24,170 and Sensex to 79,942, supported by gains in pharma, realty, and auto stocks. Despite India's GDP growth slowing to 5.4% in Q2, analysts suggest that the market's reaction may be muted, viewing potential dips as buying opportunities.
Passenger vehicle sales in India rose 4% year-on-year to 350,000 units in November 2024, driven by wedding season demand, rural market growth, and strong SUV sales. Maruti Suzuki led the market with a 5.5% increase in wholesales, reaching 144,238 units, bolstered by rural penetration and limited edition models. However, urban customers are delaying purchases for year-end benefits.
Maruti Suzuki, Hyundai Motor, Escorts, Cipla, Home First Finance, Aster DM, DLF, and Greaves Cotton are set to be in focus on Monday. Investors are encouraged to opt for push notifications to receive relevant updates on their transactions.
Lumax Auto Technologies has acquired a 60% stake in Greenfuel Energy Solutions for Rs 153 crore, marking its entry into the green and alternate fuels market. The acquisition, executed through Lumax Resources, was financed through debt and internal accruals. Greenfuel specializes in high-pressure fuel delivery systems for CNG and hydrogen vehicles, serving major OEMs like Maruti Suzuki and Tata Motors, and will continue to operate under MD and CEO Akshay Kashyap.
Maruti Suzuki India Ltd, a subsidiary of Suzuki Motor Corporation, remains the leading automobile manufacturer in India, known for its affordability and extensive service network. With a projected revenue CAGR of 7.2% for FY24-FY27E and an entry into the electric vehicle market by FY25, an ACCUMULATE rating is recommended, targeting a price of Rs 14,250 per share based on a forward P/E of 25x.
Mahindra and Mahindra (M&M) shares rose 4% to Rs 2,959 after CLSA maintained an "outperform" rating with a target price of Rs 3,440, indicating a 16% upside. Analysts expect growth to focus on mid and premium SUVs, supported by a strong pipeline of new model launches and shifting consumer preferences. M&M also reported an 18% YoY growth in passenger vehicle volumes in Q2 FY24, outperforming competitors, while the tractor segment is projected to enter a growth cycle with significant volume and EPS increases through FY27.
Commerce and Industry Minister Piyush Goyal urged auto firms to focus on competitive pricing to revive the domestic passenger vehicle market, which saw only a slight increase in sales from April to September 2024. Despite expectations of a boost during the festive season, the Society of Indian Automobile Manufacturers has revised its growth forecast for FY25 to 3-5 percent, with Maruti Suzuki's Chairman predicting continued muted growth.
The global automotive market, valued at $2800 billion in 2021, is projected to grow at a CAGR of 5.0% from 2022 to 2030, driven by rising disposable incomes, technological advancements, and increasing demand for electric and autonomous vehicles. The Asia-Pacific region is expected to lead this growth, supported by government investments and incentives for electric vehicle adoption. Major players include General Motors, Maruti Suzuki, and Volkswagen, with ongoing mergers and innovations shaping the industry landscape.
Nifty 50's new entrants, Trent and BEL, attracted attention, while Nestle India and Bajaj Auto fell short. As Samvat 2081 begins, investors are encouraged to explore undervalued opportunities, particularly in banking and auto sectors, amidst a market slowdown. In pre-opening trading, the Sensex surged 1,071.64 points to 80,460.70, and Nifty rose 296.90 points to 24,502.20. Notable updates include Societe Generale acquiring a 0.2% stake in Tilaknagar Industries and Niva Bupa Health Insurance planning a Rs 2,200-crore IPO on November 7.
Maruti Suzuki India Limited
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
Auto Industry Faces Sales Challenges Amidst Mixed November Performance
Hyundai Motor Co
Mahindra & Mahindra Ltd
Maruti Suzuki India Limited
Tata Motors FUT, December 2024,
IND
Show more
10:28 05.12.2024
Sensex and Nifty rebound as bulls overlook GDP slowdown in India
UltraTech Cement Limited
Shriram Finance Limited
GRASIM RE. 1 PPD UP
Maruti Suzuki India Limited
Apollo Hospitals Enterprise Limited
IND
Vk Vijaykumar
Show more
08:20 02.12.2024
passenger vehicle sales rise 4 percent to 350000 units in november
08:03 02.12.2024
Market Watch: Key Stocks to Monitor Including Maruti Suzuki and Hyundai
Maruti Suzuki India Limited
Hyundai Motor Co
Escorts
Cipla Limited
Aster DM
DLF
Greaves Cotton Limited
IND
KOR
Show more
20:07 01.12.2024
Lumax Auto acquires majority stake in Greenfuel Energy for 153 crore rupees
Indian Rupee
Volvo Eicher Commercial Vehicles
Maruti Suzuki India Limited
Lumax Auto Technologies Limited
Tata Motors Limited
IND
Akshay Kashyap
Show more
04:16 27.11.2024
Maruti Suzuki India Ltd receives accumulate rating with target price of 14250
05:10 26.11.2024
Mahindra and Mahindra shares rise as CLSA projects strong growth potential
Hyundai Motor
Tata Motors Limited
Mahindra AND Mahindra Ltd.
Maruti Suzuki India Limited
IND
Show more
07:16 19.11.2024
auto firms urged to focus on volume amid stagnant market growth
14:08 15.11.2024
global automotive market poised for growth driven by technology and consumer demand
Chinese Yuan
Indian Rupee
United States Dollar
Maruti Suzuki India Limited
Tata Motors Limited
MG Motor India Pvt. Ltd
HYUNDAI MOTOR INDIA LTD
Mahindra & Mahindra Limited
Honda Car India
Mercedes-Benz India Pvt Ltd
IDN
IND
CHN
Maruti Suzuki India Limited
MG Motor India Pvt. Ltd
Tata Motors
Hyundai Motor India.
Mahindra&Mahindra Ltd.
Show more
22:21 13.11.2024
market insights and trends for samvat 2081 diwali trading session
Eicher Motors Limited
Maruti Suzuki India Limited
Niva Bupa Health Insurance Company Ltd.
Societe Generale Batiment SA
Nestlé India Limited
IND
Show more
12:21 01.11.2024
Trending
Subcategory
Stock Market Updates
Corporate News
Industry Trends
Global Trade Developments
Global Financial Events
Finance Mergers & Acquisitions
Banking Regulations
Retail and Consumer Goods
Startups & Entrepreneurship
Central Bank Actions
Industry Mergers & Acquisitions
Inflation and Monetary Impact
CEO Changes
Market Analysis and Predictions
Government Economic Policies
Government Policies
Domestic Politics
Workplace Trends
GDP Growth & Recession Forecasts
Supply Chain Management
Countries:
Companies:
Barclays PLC
Apple Inc.
JPMorgan Chase & Co.
Tesla, Inc.
Deutsche Bank Money Market PP
Banco Santander, S.A.
The Goldman Sachs Group, Inc.
Credit Suisse Strategic Income I
Berkshire Hathaway Inc.
Lloyds Banking Group plc
SpaceXCoin USD
Bank of America Corporation
Amazon.com, Inc.
UBS Group AG
Morgan Stanley
NVIDIA Corporation
Wells Fargo & Company
BNP Paribas SA
Commerzbank AG
UniCredit S.p.A.
Currencies:
United States Dollar
Euro
British Pound Sterling
Swiss Franc
Japanese Yen
Indian Rupee
Chinese Yuan
Canadian Dollar
Vietnamese Đồng
South Korean Won
Australian Dollar
Thai Baht
New Taiwan Dollar
Singapore Dollar
Indonesian Rupiah
Mexican Peso
Cambodian Riel
Russian Ruble
Hong Kong Dollar
Offshore Chinese Yuan
People:
Donald Trump
Elon Musk
Warren Buffett
JD Vance
Sergio Ermotti
Mark Haefele
Robin Leopold
Olivier Calvet
Troy L Rohrbaugh
Jennifer Piepszak
Karoline Leavitt
Ursula von der Leyen
Alex Kramm
Susan P. Crawford
Scott Bessent
Stacey Friedman
Jeff Bezos
George Saravelos
Francois Xavier Bouvignies
Joseph Spak