Riders on the Storm

Despite roadblocks, the automobile sector performs well in the BT500 list, securing the fourth position on the leaderboard

- BY ASTHA ORIEL

FY25 WAS A banner year for India's automobile industry. Despite the sector's profit after tax (PAT) falling 2.5% to ₹1.12 lakh crore, vehicle sales rose 7.33% to 25.6 million units, spearheaded by record demand for three-wheelers and passenger cars.

Maruti Suzuki India Ltd's net rose 7.5% to ₹14,500 crore, driven by stable domestic demand, while Mahindra & Mahindra Ltd's PAT rose 14.7% to ₹14,073 crore, owing to blockbuster SUV sales. Tata Motors Ltd's profit, however, skidded 28% to ₹23,278 crore, from ₹32,453 crore in FY24, hurt by rising input costs and pressures on its UK unit, Jaguar Land Rover Ltd. Maruti Suzuki's gross sales rose 7.7% to ₹1.55 lakh crore and Mahindra & Mahindra breached ₹1.65 lakh crore, up 14.5%, reflecting a consumer shift towards sports utility vehicles (SUVs).

In terms of market value, Mahindra & Mahindra emerged as the star performer with its market capitalisation surging nearly 60% to ₹361,752 crore. Bajaj Auto wasn't far behind with a 33% increase in its market value. Both Tata Motors and Maruti Suzuki recorded double-digit growth in market capitalisation. The triggers were growing popularity of SUVs, demand for premium models, rural sales and robust exports.

The boom in SUV demand didn’t show any sign of slowing, expanding 11% to command nearly two-thirds of all passenger vehicle sales. “FY25 saw a strong performance, driven by robust export growth and solid gains in the two-wheeler segment, with India now ranking as the world’s third-largest automobile market,” says Anurag Singh, advisor at management consultant Primus Partners.