NewsStocksDecember Auto Sales Preview: Two-Wheelers Expected to Surge 30%, Passenger Cars to Grow 22%December Auto Sales Preview: Two-Wheelers Expected to Surge 30%, Passenger Cars to Grow 22%
December auto sales are expected to show strong performance with two-wheelers leading at 30% growth, passenger vehicles at 22%, commercial vehicles at 12%, and tractors at 18% year-on-year. Key drivers include GST cuts, wedding season demand, and higher freight rates. Major manufacturers like Hero MotoCorp, Maruti Suzuki, and Mahindra & Mahindra are projected for significant volume increases.
*this image is generated using AI for illustrative purposes only.
The Indian automotive sector is poised for robust December sales performance, with industry forecasts indicating strong growth momentum across all vehicle segments. Two-wheelers are expected to lead the charge with anticipated growth of 30% year-on-year, while passenger vehicles are projected to grow 22%, according to Nomura estimates.
Segment-Wise Growth Projections
The automotive industry's December performance is expected to reflect sustained demand across categories, with each segment showing double-digit growth potential.
| Vehicle Segment | Expected Growth (YoY) |
|---|---|
| Two-wheelers | 30% |
| Passenger Vehicles | 22% |
| Commercial Vehicles | 12% |
| Tractors | 18% |
Key Demand Drivers
Several factors are contributing to the positive sales outlook. Commercial vehicle demand is likely to remain supported by higher freight rates, which are expected to aid fleet operator profitability. Passenger vehicle and two-wheeler manufacturers are experiencing a strong inquiry pipeline, with conversions following the GST cut continuing as a key demand driver. The ongoing wedding season is also expected to have contributed to retail momentum.
Two-Wheeler Manufacturer Projections
The two-wheeler segment shows particularly strong growth expectations across major manufacturers, with Hero MotoCorp leading volume projections.
| Company | Expected Sales | Previous Year | Growth (%) |
|---|---|---|---|
| Hero MotoCorp | 4.10 lakh units | 3.25 lakh units | +26% |
| TVS Motor | 3.96 lakh units | 3.22 lakh units | +23% |
| Bajaj Auto | 3.71 lakh units | 3.23 lakh units | +15% |
| Royal Enfield | 98,333 units | 79,466 units | +24% |
Passenger Vehicle Outlook
The passenger vehicle segment is expected to maintain strong momentum, with Maruti Suzuki projected to lead in absolute volumes while Mahindra & Mahindra shows the highest growth rate.
| Manufacturer | Expected Sales | Previous Year | Growth (%) |
|---|---|---|---|
| Maruti Suzuki | 2.12 lakh units | 1.78 lakh units | +19% |
| Mahindra & Mahindra Auto | 85,067 units | 69,768 units | +22% |
| Hyundai | 62,667 units | 55,078 units | +14% |
| Tata Motors PV | 51,667 units | 44,289 units | +17% |
Commercial Vehicles and Tractors
The commercial vehicle segment is expected to benefit from improved freight economics, while tractor sales are projected to show healthy growth.
| Category | Company | Expected Sales | Previous Year | Growth (%) |
|---|---|---|---|---|
| Commercial Vehicles | Tata Motors | 38,550 units | 33,900 units | +14% |
| Commercial Vehicles | Ashok Leyland | 19,767 units | 16,957 units | +17% |
| Tractors | Mahindra & Mahindra | 26,433 units | 22,943 units | +15% |
The December sales preview indicates a broad-based recovery across the automotive sector, with sustained demand momentum expected to drive volume growth across all major vehicle categories and manufacturers.
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