The Nifty Auto index surged to a new high, driven by a 5% rally each in Tata Motors and Ashok Leyland shares. Strong November wholesale volumes, positive investor sentiment, and favorable industry fundamentals propelled the gains, highlighting resilience in India’s automotive sector.
The Nifty Auto index on the NSE climbed to an intra-day peak of 27,832.60 on November 26, 2025, surpassing its previous record set in September. Leading the charge were Tata Motors and Ashok Leyland, both rallying approximately 5%, while other major automakers like Hero MotoCorp, TVS Motor Company, and Bajaj Auto posted modest gains.
According to Nuvama Institutional Equities, robust November wholesale numbers across two-wheelers, commercial vehicles, and passenger vehicles fueled market optimism. The commercial vehicle segment saw a projected 15% year-on-year volume growth, buoyed by GST cuts on certain vehicle categories, improving freight demand, and easier financing availability.
S&P Global Ratings expects Tata Motors to maintain dominance in India’s commercial vehicle market, backed by strong economic growth and infrastructure expenditure. Meanwhile, Ashok Leyland’s leadership in medium and heavy commercial vehicles, along with export momentum and electric vehicle advances, supports its strong long-term outlook.
Though short-term volume recovery uncertainties remain, ICICI Securities maintains a HOLD rating on Ashok Leyland, valuing it at ₹165 per share based on sum-of-the-parts analysis.
Key Highlights
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Nifty Auto index reached an all-time high of 27,832.60
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Tata Motors and Ashok Leyland shares jumped about 5% each on strong sales outlook
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Commercial vehicle segment expected to grow 15% YoY in November 2025
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GST cuts, better freight availability, and financing support sustained demand
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Tata Motors to maintain market dominance amid favorable economic conditions
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Ashok Leyland’s export growth and EV progress bolster its long-term prospects
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Analysts hold cautious optimism amid volume recovery uncertainties
Source: Business Standard, S&P Global Ratings, Nuvama Institutional Equities, ICICI Securities