February sales data boosted shares of TVS Motors, Eicher Motors, Mahindra & Mahindra on Monday, while Bajaj Auto, Ashok Leyland, Hero Motocorp and Maruti Suzuki depreciated. 

Auto sector showed resilience despite weakened market sentiment. Nifty auto ended at 20,538.15, up 0.19 per cent. The index continued to experience pressure due to weak demand, continued selloff and potential competition due to Elon Musk-led Tesla’s entry into the market.

Analysts acknowledged a broader slowdown in demand across segments, while tractor volume sustained. Passenger vehicles (PVs) and commercial vehicles (CVs) were in line, while tractor volumes exceeded Motilal Oswal’s expectations. It added that Royal Enfield, Escorts Kubota, and M&M tractors outperformed estimates.

Mahindra & Mahindra shined with 15 per cent growth in overall auto sales in February 2025 to 83,702 units.

Both Bajaj Auto and Ashok Leyland recorded 2 per cent increase in total sales in February 2025. However, Bajaj Auto’s domestic sales declined 11 per cent, while exports rose 2 per cent. 

Hero Motorcorp sales were hit by 17 per cent to to 3,88,068 units in February 2025. Tata Motors recorded 8 per cent year-on-year (y-o-y) decline to 79,344 units.

Top picks by brokerages

Maruti Suzuki India emerged as the brokerages’ favourite in PVs space, which sold 1,99,400 units in February, slightly up 0.97 per cent. The domestic brokerage opined that the upcoming new launches would continue to help improve the mix and drive healthy earnings growth. Motilal Oswal also preferred Mahindra & Mahindra, given the upcycle in tractors and healthy growth in utility vehicles (UVs).

In addition, Emkay Global analysts favoured TVS Motors (with 10 per cent sales growth y-o-y) and Eicher Motors (19 per cent growth y-o-y) in the two-wheelers segment and Escorts in tractors. TVS and Eicher continue to gain market share with strong product actions and pricing discipline, while exports revive as macro challenges ease, they added.

The broader market closed in red on Monday, marginally up from day’s low. Sensex dipped 112 pts to 73,085.94, and Nifty closed flat at 22,119.30.

Among auto stocks, TVS Motor led with 4.79 per cent increase to ₹2,332. Eicher Motors closed among top gainers of Nifty 50 constituents, positive by 2.94 per cent at ₹4,914. M&M shares settled with 1.04 per cent gain at ₹2,612, after hitting an intraday high of ₹2,695.95.

Escorts Kubota shares ended 2.90 per cent positive at ₹2,952.25.

Tata Motors closed flat at ₹621.40. On the losing side, Bajaj Auto fell 2.44 per cent to close at ₹7,710. Shares of Ashok Leyland declined 1.86 per cent to ₹208.98. Hero Motocorp and Maruti Suzuki stocks also ended in red.