Synopsis: BofA reports shifting auto market trends in November as Maruti’s share cools, Hyundai and M&M recover, Hero gains momentum, and Royal Enfield stays strong, while truck demand improves and EV volumes moderate across segments.
Bank of America’s latest commentary on the Indian automobile sector highlights notable shifts in market share across major auto manufacturers for November.
Four-wheeler segment
Maruti Suzuki, the country’s largest carmaker, saw its market share soften to around 39% during the month. This marks a decline from its festive-season peak of nearly 43%. According to BofA, this dip could be attributed to a tapering in demand for small cars, an area where Maruti dominates particularly after the withdrawal of festive discounts that had temporarily boosted volumes.
Hyundai and Mahindra & Mahindra (M&M) registered a recovery in their respective market shares. After facing competitive pressure earlier in the year, both manufacturers managed to regain some lost ground, aided by steady demand for their utility vehicles and strong performance of new models. Their ability to sustain momentum in key segments appears to have helped stabilize their market presence in November.
Two-wheeler segment
In the two-wheeler segment, Hero MotoCorp stood out with an impressive performance. The company is now commanding nearly 35% market share, marking its second consecutive strong month. This sustained growth has also translated into year-to-date gains, signaling a positive turnaround for Hero as it benefits from rural market recovery and improving demand for entry-level motorcycles.
Eicher Motors’ Royal Enfield brand continued its robust run, delivering more than 110,000 domestic retail sales during the month. This reflects ongoing strong demand for mid-segment motorcycles, where Royal Enfield maintains a dominant position. The consistent retail momentum suggests that consumer preference for lifestyle and leisure motorcycles remains intact despite broader economic uncertainties.
BofA also pointed out a noticeable pickup in the trucks segment, which had previously been sluggish. The renewed momentum in this category is particularly significant because commercial vehicle trends often reflect broader economic health. A rebound after a period of slowdown may indicate improving freight activity and infrastructure-related demand.
Electric Vehicle Volumes
The brokerage noted that electric vehicle (EV) volumes in both the two-wheeler and passenger vehicle segments appeared to moderate in November. This slowdown may be due to seasonal factors, evolving consumer sentiment, or lower incentives compared to previous months. Nonetheless, EV adoption remains a structural trend to watch even as near-term growth appears softer.
Written by Manideep Appana
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