M&M, Ashok Leyland in Focus as Auto Index Hits Record High on Strong December Sales

Auto stocks were in strong demand on January 1, 2026, with the BSE Auto index hitting a fresh record high of 63,011.82 during intraday trade. The index rose about 1%, clearly outperforming the broader market.

Over the past 3 sessions, the auto index has gained nearly 3%, and in the last 6 months, it is up around 18%.

Top Auto Stocks Lead the Rally

Several auto majors touched or came close to their lifetime highs:

• Ashok Leyland rose nearly 3% to hit an all-time high
• TVS Motor Company gained about 2%, also touching a record high
• Mahindra & Mahindra (M&M) climbed around 2% and traded close to its lifetime high
• Tata Motors added about 2% in intraday trade

The rally was driven by strong December 2025 sales updates from auto manufacturers.

M&M Reports Strong December Sales

Mahindra & Mahindra reported 25% year-on-year growth in total auto sales for December 2025 at 86,090 units.

• Domestic utility vehicle sales rose 23% to 50,946 units
• Commercial vehicle sales jumped 34% year-on-year to 24,786 units

Commercial Vehicles and Two-Wheelers Perform Well

• VE Commercial Vehicles (Eicher Motors’ subsidiary) reported a 26.3% rise in domestic truck and bus sales at 9,527 units, while exports grew 32.7%
• Eicher Motors’ two-wheeler sales increased 30% year-on-year to 1,03,574 units

Tractors See Healthy Growth

VST Tillers and Tractors reported strong numbers:

• Power tiller sales rose to 3,792 units from 3,007 units last year
• Tractor sales increased to 584 units from 365 units in December 2024

Also Read: Wipro vs Infosys: Which IT Services Company Delivered Highest Earnings in Q2FY26?

Conclusion

Strong December sales and positive demand outlook pushed auto stocks to new highs. With GST benefits, easing rates and steady demand, the auto sector remains one of the strongest performers entering 2026.

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