Synopsis:
The Indian government is planning GST reforms that will benefit the automobile sector just before the 2025 festive season. As per the announcement, the GST on two-wheelers with engines up to 350cc has been cut from 28 percent to 18 percent. However, bigger bikes with engines above 350cc will continue to attract 28 percent GST.
The proposed GST cut on two-wheelers up to 350cc will make them more affordable, encouraging more buyers during the festive season. This is expected to drive higher sales, boost demand in the mass market, and improve revenues for automakers, even though premium bikes above 350cc will remain costlier due to higher taxes.
Monthly Sales Data & Financials
1. TVS Motor Company Limited
In August 2025, TVS Motor Company posted strong sales, selling 5,09,536 units, up by 30 percent from 3,91,588 units in August 2024. Total two-wheeler sales rose 30 percent from 3,78,841 to 490,788 units. Motorcycles grew 30% to 221,870 units, while scooters surged 36% to 2,22,296 units.
Electric vehicle sales saw a high of 25,138 units from 24,779 units. Export performance was strong, with total exports of 35 percent from 99,976 units to 1,35,367 units. Two-wheeler exports rose 36 percent from 89,768 units to 121,926 units, and three-wheelers saw a 47 percent jump from 12,747 units to 18,748 units.
The company’s revenue from operations surged from Rs.10,314.47 crore in Q1 FY25 to Rs.12,210.05 crore in Q1 FY26, while net profit surged from Rs.484.82 crore to Rs.642.86 crore. It reported a ROE of 28.4 percent and an ROCE of 15.4 percent. The 3-year average P/E ratio is 58.6.
2. Bajaj Auto Limited
Bajaj Auto Limited’s total sales rose by 5 percent to 4,17,616 units in August 2025, up from 3,97,804 in August 2024. Two-wheeler sales saw an increase of 2 percent from 3,35,178 units to 3,41,887 units.
While exports surged by 25 percent to 1,57,778 units from 1,26,557 units. In the commercial vehicles segment, total sales grew 21 percent to 75,729 units from 62,626 units. While exports grew 58 percent to 27,440 units from 17,420 units.
The company’s revenue from operations surged from Rs.11,932.07 crore in Q1 FY25 to Rs.13,133.35 crore in Q1 FY26, while net profit surged from Rs.1,941.79 crore to Rs.2,210 crore. It reported a ROE of 22.8 percent and an ROCE of 28.1 percent. The 3-year average P/E ratio is 29.3 .
3. Hero MotoCorp Limited
Hero MotoCorp Limited’s total sales rose 8 percent to 5,53,727 units in August 2025, up from 512,360 units in August 2024. Domestic sales rose to 519,139 units from 492,263, while exports showed a significant jump to 34,588 units from 20,097 units. Motorcycle sales increased to 501,523 units in August 2025, compared to 478,215 units in the previous year. Similarly, scooter sales also saw a rise, with 52,204 units sold in August 2025 from 34,145 units in August 2024.
The company’s revenue from operations fell from Rs.10,210.79 crore in Q1 FY25 to Rs.9,727.75 crore in Q1 FY26, while net profit surged from Rs.1,032.21 crore to Rs.1,705.65 crore. It reported a ROE of 23.1 percent and an ROCE of 30.3 percent. The 3-year average P/E ratio is 20.6.
Written By Jhanavi Sivakumar
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