Auto sales in slow lane. Can companies steer a turnaround in H2 FY25?

Things were a lot different a year ago for auto companies. Giant Maruti Suzuki, for instance, had grown its profit by a massive 80 per cent in the September 2023 quarter thanks to the demand revival that was still playing out after a tough Covid run. A year later, Maruti's profit has tanked 17 per cent in the latest September 2024 quarter (Q2 FY25). This is not exclusive to Maruti. The entire industry has reported similar declines. The market has reacted appropriately. The BSE Auto index that delivered 27 per cent higher returns than Sensex in 2023 is now down 14 per cent from its September high (as of November 25, 2024). Losing pace Except Mahindra & Mahindra, all other bigwigs had a rough quarter Companies Revenue YoY EBIT (ex other income) YoY PAT YoY October PV sales MoM Mahindra & Mahindra 10.6 31.4 35.1 6.7 Maruti Suzuki 0.4 -8.1 -17.4 10.1 Tata Motors