SML Mahindra Limited shares jumped nearly 3% to ₹4,077 after the company reported exceptional December performance, achieving total vehicle sales of 1,044 units compared to 626 units in December 2024, representing a substantial 67% year-on-year increase. According to the company's regulatory disclosure, cargo vehicles emerged as the standout performer with exceptional growth of 76%, increasing from 262 units to 462 units in December 2025. The passenger vehicle segment also demonstrated strong momentum, achieving 60% growth with sales rising from 364 units to 582 units during the same period. The sharp improvement in monthly volumes, coupled with sustained demand momentum, has brought SML Mahindra into focus as the December performance indicates strong demand heading into the final quarter of FY26.
Mahindra & Mahindra (M&M) reported strong December performance with total sales of 86,090 units, representing a 26% increase from last year's 68,814 units and in-line with estimates of 85,067 units. According to the company's latest disclosure, domestic passenger vehicle sales increased 23% to 50,946 units from 41,424 units last year, though total exports declined 9% to 2,820 units from 3,092 units in the year-ago period. The standout performer was the tractor segment with sales of 31,859 units in December, above CNBC-TV18's poll estimate of 26,433 units and marking a 39% increase from last year's 22,943 units. M&M shares were up 1.2% at ₹3,752.9 around 10.05 am on Thursday.
Escorts Kubota reported total sales increase of 38.5% to 7,577 units from 5,472 units in the previous year, with power tiller and tractor sales growing 30% to 4,376 units from 3,372 units last year. According to the company, the Construction Equipment industry continues to face short-term challenges from slow project mobilization, weak rental rates, and elevated costs from CEV Stage V compliance, though government infrastructure spending and fund-flow initiatives are expected to support gradual recovery into 2026. Shares of Escorts Kubota were up 2.3% at ₹3,805.5 around 9.25 am, while the stock gained 0.7% at ₹6,304 around 9.30 am on Thursday.
National vehicle registration data compiled by VAHAN for December 1 to 28, 2025, showed a 9% increase compared to the previous year, indicating broad-based strength across the automotive sector. According to the latest VAHAN reports, passenger vehicle, commercial vehicle, and three-wheeler segments were key drivers of this growth momentum. However, the two-wheeler segment continued to face headwinds, showing divergence from the strong performance in other categories. While Eicher Motors and TVS Motor managed to outperform in the two-wheeler segment, Hero MotoCorp emerged as the biggest underperformer, highlighting the varied performance within different automotive categories.
For the April-December period of fiscal year 2025-26, SML Mahindra maintained positive growth trajectory with total vehicle sales of 11,335 units compared to 9,593 units in the corresponding period of the previous year, marking an 18% increase. According to the company's latest reports, cumulative cargo vehicle sales increased to 3,820 units from 2,770 units, registering a 38% growth, while passenger vehicle sales rose to 7,515 units from 6,823 units, recording a 10% YoY increase over the same period. The cumulative performance reflects sustained demand momentum across both key segments throughout the fiscal year.
Auto stocks ended the previous session on a positive note, up 1.1%, with all 15 stocks in the Nifty Auto index reporting gains, led by TVS Motor, Tube Investments of India, Eicher Motors, Bosch and Tata Motors PV. The index gained an impressive 21.8% in 2025, reflecting robust sector momentum and strong investor confidence throughout the year. Looking ahead to January 2026, the automotive industry is gearing up for exciting new launches including Maruti Suzuki's first electric SUV e-Vitara, Mahindra's XUV 7XO, and Royal Enfield's Bullet 650 motorcycle. These new model introductions are expected to drive further sales momentum and maintain the positive trajectory established in December 2025.
