Auto stocks rise up to 3%, Maruti Suzuki reports 22% rise in December sales

Maruti Suzuki share price

• Nifty Auto index rose over 0.7 percent as auto stocks gained for third session
• Mahindra & Mahindra's December sales rose 25% YoY to 86,090 units.
• Escorts Kubota sales rose 38.5% YoY in December; shares reached monthly high.

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The shares of auto companies rose in trade on January 1 as some of the automakers began releasing their December sales reports.

The rise in the auto stocks pushed the Nifty Auto index up more than 0.7 percent to 28,400.90, as seen at 1.25 pm. The index has now extended gains for the third consecutive session.

Ashok Leyland shares were the top gainers on the index, rising more than 3 percent. The company is yet to release its monthly sales data.

M&M December sales:

Mahindra & Mahindra (M&M) shares followed, rising more than 1 percent. This comes after the Thar-maker reported a 25 percent year-on-year (YoY) increase in its December sales to 86,090. Its sales of utility vehicles grew 23 percent YoY to 50,946 in the domestic market, while that of commercial vehicles rose 34 percent YoY to 24,786 in the month of December.

"The calendar year 2025 ended on a positive note, with Mahindra clocking its highest-ever volumes in both SUVs and LCVs (<3.5T) segments, a significant milestone for the company. In December, we achieved SUV sales of 50,946 units, a growth of 23% and LCV< 3.5T sales of 24,786 units, a growth of 34%. The total vehicle sales stand at 86,090 units, a 25% year-on-year growth," said Nalinikanth Gollagunta, CEO of Automotive Division at M&M.

In September, India cut the tax on SUVs with engines above 1500 cc to 40% from about 50% to boost demand, a change that applies to most of Mahindra's SUV range.

TVS Motor Company and Tube Investments of India shares rose over 1 percent, while Tata Motors Passenger Vehicle, Maruti Suzuki, Samvardhana Motherson, Bajaj Auto, Bharat Forge and Exide Industries shares were trading in the green with marginal gains.

Maruti Suzuki December sales:

Maruti Suzuki reported a 22 percent YoY rise in total sales to 2,17,854 in the month of December. Its total domestic sales rose 36 percent YoY to 1,92,115 units, while domestic sales of passenger vehicles rose 37 percent YoY to 1,78,646 units.

Small car sales rose 50 percent to 92,929 units, its highest level since January 2025. Sales of its utility vehicles meanwhile climbed 33 percent.

Eicher Motors, Hero MotoCorp, Bosch and Sona BLW Precision Forgings shares bucked the trend to trade in the red.

Shares of Escorts Kubota, which are not part of the Nifty Auto index, rose more than 3 percent to Rs 3,850, highest in a month after the tractor maker's total sales grow 38.5 percent YoY in December 2025. Domestic tractor sales rose 36.1 percent YoY, while exports jumped 64.3 percent.

In September, the Union government cut goods and services tax on small cars to 18 percent from 28 percent, and on sports utility vehicles with engine capacities of more than 1,500 cc to 40 percent from about 50 percent, in a bid to spur consumer spending and bolster growth amid steep U.S. tariffs.

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