Will Indian Auto stocks nosedived in 2024 throttle up in 2025?

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With 2024 ending with dull momentum for the Indian auto stocks, expectations increased whether 2025 will bless them on the stock market graph. Here’s analysis from Jaishankar Jayaramiah, Editor, Automotive Lead.

The year 2024 did not remain as a much cheerful year for the Indian automotive stocks listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Although the year witnessed two big ticket companies listing from auto industry– Ola and Hyundai, the market struggled to light up the auto index.

Ola Electric Mobility

OLA Electric Mobility, manufacturer of EVs and certain core EV components like battery packs, motors, and vehicle frames, was making news since past one year before listing.  But when it was nearing the listing day the company has been hit with several negative news including connected to service issues.

Atlast the EV maker fixed the upper band issue price at Rs 76.

Still the shares of Bhavish Aggarwal-led Ola Electric Mobility made a lacklustre debut on the bourses despite positive market sentiments in the August second week as its shares listed flat at Rs 75.99 on the BSE and Rs 76 on the NSE, against the issue price of Rs 76.

However the company managed to climb up in the graph and touched its all time high of Rs 157.40 within two weeks but could not sustain its initial momentum and nosedived to below listing price in November 3^rd week to touch Rs 66.66.

Now when this report was written on December 24,  the stock was trading at Rs 92.92, almost at 40% discounted value of its all time high.

Hyundai Motor India

Another big ticket IPO from auto industry was Hyundai Motor India, the 100% subsidiary of South Korean vehicle maker Hyundai.

The IPO listing from Hyundai stood out from the crowd as the most significant as it was garnering Rs 27,870 crore. It has not only set records but also stoked interest in the potential for large scale IPOs in the future.

But the South Korean car maker failed to catch the sentiments of the Indian retail stock investors as shares of Hyundai Motor made a muted debut on the bourses on October 22 as they listed at Rs 1,934 on NSE, a discount of 1.3 per cent to the issue price of Rs 1,960. Meanwhile, on BSE, it listed at
Rs 1931, down 1.5 per cent.

Since listing, Hyundai is struggling to lit up any momentum among the Indian share market investors. Now this auto stocked declined to Rs 1753 (as on December 24).

Tata Motors

Another promising auto stock Tata Motors – India’s largest commercial vehicle maker and prominent player in the Indian car industry, pitching brutal challenge to car market leaders Maruti and Hyundai- too struggling to maintain its momentum.

The stock that stood at Rs 716 in the last December 2023 picked up in alarming levels and touched its 52 weeks high of Rs 1179 in July 2024 but it tumbled since then to touch Rs 722 as on December 24, 2024, nearing almost its 52 week low of Rs 716.60.

Bajaj Auto, Hero Motor & Maruti

Likewise other big tickets in Nifty auto index like Bajaj Auto and Hero Motors too are not in good shape.

Bajaj that witnessed year-high of Rs 12,774 on Septmber 27, 2024 is now trading at Rs 8,790 while Hero Motocorp Ltd is trading at Rs 4,276 after touching it’s year-high of Rs 6,246 in the fourth week of September.

Even India’s laregest car maker Maurti that touched 52 weeks high of Rs 13,680 on August 1 is now sold at Rs 10,873.

Ashok Leyland & Eicher Motor

Another notable commercial vehicle makers – Ashok Leyland and Eicher Motors too are trading at discounted rates from its year high.

Ashok Leyland is being traded at Rs 221 against its year-high price of Rs 264 while Eicher is trading at Rs 4,800 as compared to its 52 weeks high of Rs 5,105.

Auto Ancillary stocks

Not only vehicle makers, even the auto ancillary stocks are in bad note during the year end.

Samvardhana Mothernson International, an Indian multinational manufacturer of automotive components including wiring harnesses, plastic components and rearview mirrors for passengers cars, is also dancing in low note.

Samvardhana that managed to touch its 52 weeks high of Rs 216.93 in September fourth week of 2024 is now nosedived to Rs 155 as on December 24.

Like wise other stocks like Jamna Auto, Automotive Axles, Motherson Sumi Wiring, Exide and Bharat Forge – all are trading at 30-40% discounted price from its 52 weeks high.

Now as we entering into the new year 2025, the retail investors inclined to auto stocks are keenly watching the stock movements.

A few of the vehicle makers have already announced price hike from January while others are in line, citing increasing raw material cost.

Experts suggest we have to wait and watch how these stocks will see momentum in the new year as the auto sales is always taken as one of the major reader of the Indian economy.

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