The Nifty Auto Index recorded a strong rally in early September 2025, supported by GST reforms and steady sales momentum.
On Monday, September 8, the Nifty Auto index jumped over 2% to hit an 11-month high. The index surged 5.45% in the first week, recording its best weekly performance since May, with all 15 constituents contributing to the gains.
On a year-to-date basis, the Nifty Auto Index has outperformed the Indian benchmark Nifty 50 with a 16% surge, while the Nifty 50 has gained only 4.36%.
The recent rally was fueled by expectations of GST rationalisation, boosting optimism for auto makers and price reduction trends. Auto makers announced likely price drops on top models due to GST changes. Auto dealers saw subdued sales during Ganesh Chaturthi and Onam, but the outlook remains positive due to broader economic improvement and government action.
The Nifty Auto index has gained over 8% in September, driven by a strong surge in the Mahindra & Mahindra share price. However, in 2025, TVS Motor Company, Maruti Suzuki, and Eicher Motors have been the top contributors to the Nifty Auto Index.
TVS Motor is one of the leading players in the two-wheeler industry and is the only company to have a presence in all three categories, i.e., motorcycles, scooters, and mopeds. The TVS Motor share price has jumped by 49.78%, making it the top-performing auto stock in 2025 among the Nifty Auto constituents.
TVS Motor achieved its highest-ever monthly sales in August 2025, crossing the five lakh units milestone with a 30% year-on-year jump to 509,536 units compared to August 2024. Motorcycles’ segment saw a 30% YoY growth while scooters grew 36%; exports also contributed strongly with a 35% jump in August volumes.
TVS launched the new NTORQ 150, India’s quickest hyper sport scooter. TVS earlier launched the ORBITER, targeting urban electric vehicle commuters, and continued to expand its electric vehicle offerings despite short-term challenges in magnet availability for EVs.
The Indian Government reduced GST on two-wheelers (up to 350cc) from 28% to 18%, effective September 22, which is expected to significantly boost demand — especially for TVS’s core segments.
Maruti Suzuki, the top automaker by market capitalisation, is the second-best performing auto stock of 2025. Maruti share price has surged 38.72% on a year-to-date basis.
In the August sales data of Maruti Suzuki, domestic passenger vehicle sales fell 8.2% YoY to 131,278 units (vs. 143,075 in August 2024). Mini cars (Alto, S-Presso) dropped 35.6% YoY, while the utility vehicle portfolio declined 13.7%. Compact cars like Baleno, Swift, and WagonR showed modest growth, rising to 59,597 units (from 58,051). Light commercial vehicle sales rose 11% YoY to 2,772 units. Export sales surged to 36,538 units in August 2025 (vs. 26,003 units a year earlier), supporting the overall performance.
Maruti Suzuki has launched the Victoris mid-size SUV, targeting high-growth segments and broader distribution via the Arena network for deeper market penetration into tier-2 and tier-3 cities.
The GST reform, demand revival, export growth, and product innovation have been the leading catalysts for Maruti Suzuki's stock surge in 2025.
Eicher Motors is a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. Eicher Motors has emerged as the third top-performing auto stock in 2025, with gains of 37.68%.
Eicher Motors reported strong sales growth in August 2025. The company achieved a 55% increase in motorcycle sales with 1,14,002 units sold compared to 73,629 units in August 2024. Exports also rose significantly by 39%, shipping 11,126 units abroad versus 8,006 units the previous year.
On the commercial vehicles side, Eicher Motors' subsidiary VE Commercial Vehicles (VECV) recorded about 7,167 units sold in August 2025, reflecting a 9.5% year-on-year increase. Additionally, the total sales of Eicher trucks and buses (including EVs) grew by 10.2% to 6,924 units from 6,283 units last year.
Eicher Motors' share price surged in 2025 primarily due to strong financial performance and sales growth, especially driven by its Royal Enfield motorcycle brand.
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