The festive season did little to shift the gears for India’s automobile sector in Q3 FY25, with a muted 6% YoY volume growth that left analysts scratching their heads. While the Passenger Vehicle (PV) segment rode the festive wave, two-wheelers stalled, and commercial vehicles continued to struggle. On the brighter side, tractors bucked the trend, showing solid recovery and hinting at improving rural sentiment. The slowdown in two-wheelers is particularly striking, given the segment’s strong run in the first half of FY25. Domestic sales flatlined in Q3 compared to a 15% growth earlier, though export markets like Africa offered a glimmer of hope. Several key players saw earnings downgrades, reflecting the tepid demand outlook. Bajaj Auto, Tata Motors, and Ashok Leyland faced cuts of 13%, 6%, and 7%, respectively. Even ancillary giants like Sona BLW and Motherson Sumi took hits. Despite this cautious backdrop, analysts see promise in Maruti Suzuki and Hyundai. Maruti’s upcoming launches and Hyundai’s alignment with UV trends position them for potential growth. For Maruti Suzuki, strong volumes could deliver a 16% YoY revenue growth, but higher discounts might squeeze margins. Tata Motors, buoyed by Jaguar Land Rover and India PV growth, is expected to post a 9% rise in net profit with improving margins.