Archive · 9 Jan 2026
India's Auto Sector Thrives
India's car and bike companies did really well in the last three months of 2025.
More people bought cars and bikes because of lower prices due to tax changes and better money situation in villages.
Bikes with bigger engines and SUVs were especially popular.
Trucks and other big vehicles also started selling more because of more building and mining work.
However, the companies might face higher costs for materials like aluminum and copper, which could affect their profits in the future.
Experts think that the overall earnings of big companies in India will grow a lot in this quarter, which could bring back foreign investors.
India's automobile industry saw a 20% year-on-year growth in passenger vehicle volumes in Q3 2025, driven by GST reforms and rural demand pickup.
Two-wheelers recorded high-teens growth, led by motorcycles in the 150cc and higher segments, with some models facing extended waiting periods.
Commercial vehicles showed early signs of an upcycle, supported by a revival in construction and mining activity.
Inventory days fell sharply to 45 days in November and 38 days in December 2025, from over 55 days earlier.
Rising raw material costs and the reintroduction of steel safeguard duties from January 2026 could pressure margins in the coming quarters.
- Who
- India's automobile industry, PL Capital, CLSA, Motilal Oswal Financial Services (MOSL)
- What
- Strong Q3 performance driven by GST reforms and rural recovery
- When
- October–December 2025 (Q3 2025)
- Where
- India
- Why
- GST reforms, rural demand pickup, and festive momentum
- Passenger Vehicle Growth
- 20% YoY in Q3 2025
- Two-Wheeler Growth
- High-teens growth in Q3 2025
- Commercial Vehicle Growth
- Early signs of upcycle in Q3 2025
- Inventory Days
- Fell to 45 days in November, 38 in December 2025
- Rural Demand Drivers
- Healthy Kharif harvest and better Rabi sowing
- Raw Material Costs
- Rising costs of aluminium, copper, and platinum
- Steel Safeguard Duties
- Reintroduced from January 2026
- Earnings Growth
- 16% YoY expected in Q3 FY26
Sources
DMart in, Reliance Industries out: Decoding CLSA’s 18-stock India strategy for 2026
Nuvama’s 6 ‘Buy’ recommendations in consumer sector with up to 26% upside potential
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After I-T, GST rate cuts, headroom available in Budget is low, says Kunal Vora of BNP Paribas Securities India
From mega M&As to aggressive expansion, 2025 was the year of Indian conglomerates. Will the momentum sustain in 2026?
'Nifty May End At 29.5K By Dec-End'
TCS Q3 results, dividend on Monday, January 12: Q3 preview, deal wins, target prices
TCS, Infosys to offer clues on 2026 demand as street estimates look up
Eternal, Tata Steel to Airtel: These 6 Nifty 50 companies can report over 40% YoY jump in profit — Do you own any?
