India’s auto industry detailed a blended pack of comes about for Q3 FY25, with minimal development in household deals, quieted productivity, and sector-specific divergences. Agreeing to a nitty gritty examination by Motilal Oswal Monetary Administrations (MOFSL), the division saw volume development of fair 3% year-on-year (YoY), barring tractor deals. In spite of merry season advancements and modern item dispatches, benefit edges were hit by rising showcasing costs, forex instability, and forceful discounting.

Segment-Wise Auto Division Execution: Q3 FY25 Overview

Traveler Vehicles (PV): Shinning Spot in Auto Sales

• Overall PV volume development: +4.5% YoY
• SUVs and Vans: Solid 11.5% YoY growth
• Passenger cars: Drooped by 8% YoY in the midst of weak little car demand
• Key Drivers: SUV request surge, festive-season launches

Commercial Vehicles (CV): Lukewarm Growth

• Total CV development: Fair 1% YoY
• Goods section: Contracted by 5% YoY
• Buses (MHCV): Upheld by foundation and open transport investments
• LCVs: Posted unassuming 3% YoY rise

Two-Wheelers (2W): Trades Up, Household Request Sluggish

• 2W Trades: +29% YoY (moo base effect)
• Domestic 2W Deals: Drowsy in spite of progressed rustic showcase sentiment
• Top Send out Entertainers: Bajaj Auto, TVS Engine Company

Tractors: Beating Segment

• Tractor deals development: Strong 14% YoY
• Driver: Solid provincial request and favorable monsoons

Auto Trades Viewpoint: Recuperation Uneven Over Markets

• 2W & PV Send out Development: 29% and 19% YoY, separately (moo base)
• Emerging Markets: Africa, Latin America, and Center East appear positive signs
• Developed Markets: Europe remains frail; North America appears a few resilience
• Outlook: Trade recuperation still dubious for Indian OEMs and auto subordinate stocks like Bharat Fashion, Motherson, and Expert Automation

Auto Division Edges Beneath Weight in Q3 FY25

According to MOFSL:

• Revenue Development (Auto Universe excl. CIE India): +7% YoY
• EBITDA: Down 2% YoY
• PAT (Benefit After Assess): Down 3% YoY
• EBITDA Edges: Compressed by 120 bps YoY to 13%

Key Fetched Pressures:

• Higher promoting spends amid happy season
• Steeper discounts
• Forex losses

OEMs vs Auto Ancillaries

OEMs (Unique Hardware Manufacturers):

• Revenue: +7%
• EBITDA: -1%
• PAT: -2%

Auto Ancillaries:

• Revenue: +8%
• EBITDA: -8%
• PAT: Level YoY

Profit Assess Modifications: EPS Minimize Over the Board

Due to request lull and dubious trade viewpoint, examiners downsized profit projections for a huge parcel of the scope universe.

Notable Minimize for FY26E EPS:

• Hyundai Engine India: -9%
• Escorts Kubota: -10%
• Exide Businesses: -13%
• Samvardhana Motherson Worldwide: -15%
• Bharat Produce: -17%
• Craftsman Computerization: -20%

Beat Auto Stocks to Observe for FY26: MOFSL Recommendations

Despite near-term challenges, MOFSL remains bullish on the PV portion, anticipating a recuperation in development and benefit from FY26 onward.

Beat OEM Picks:

• Maruti Suzuki India (MSIL): Remains best recommendation
• Mahindra & Mahindra (M&M): Solid provincial and SUV portfolio
• Hyundai Engine India: Innovation-led development with hybrid/electric push

Beat Auto Subordinate Picks:

• Endurance Technologies
• Happy Forgings
• Samvardhana Motherson Universal (in spite of near-term trade headwinds)

Auto Division Viewpoint: What to Anticipate in Q4 FY25 and Beyond

• Volume Development: Anticipated to stay in low-to-mid single digits over 2W, PV, and CV segments
• Margins: Likely to stabilize as crude fabric costs plateau
• Export Dangers: Diligent vulnerability in worldwide markets may weigh on performance
• Ancillaries with Worldwide Introduction: May proceed confronting edge compression and profit volatility