Automobiles & Auto Components share price target

Top Conviction Ideas - Hero MotoCorp Ltd; Bajaj Auto Ltd; Ashok Leyland; Sansera Engineering.

In July 2025, India’s automobile industry navigated an uncertain landscape marked by split dynamics across
its segments. Passenger car dispatches were flat or slightly down, reflecting weak demand, high inventory
levels, and a cautious retail outlook.

Auto Monthly Sales Volume - July 2025

Total sales volume grew by 3.1% YoY (+7.5% MoM) to 1,80,526 units, led by strong export growth and a broad-based sequential recovery in domestic dispatches.

Q1FY26 Earnings Preview - Automobile

The Indian auto industry witnessed a divergent performance in Q1FY26, with strong traction in the two-wheeler and tractor segments, while the passenger vehicle (PV) and commercial vehicle (CV) categories grappled with demand moderation, elevated inventory, and fragile retail sentiment.

We prefer Hero Motocorp and Bajaj Auto in 2Ws (TVS, Eicher seem fully valued at CMP); M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also like Ashok Leyland in the CV space, followed by a close watch on Eicher (VECV) for any market share gains.

Top Conviction Ideas - Hero Motocorp Ltd, Ashok Leyland, Sansera Engineering Ltd, Steel Strip Wheels Ltd.

In the long term, we prefer TVS Motors and Hero Motocorp in 2Ws; M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also keep a close watch on Ashok Leyland and Eicher (VECV) in the CV space for market share gains.

In the long term, we prefer TVS Motors and Hero Motocorp in 2Ws; M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also keep a close watch on Ashok Leyland and Eicher (VECV) in the CV space for potential volume growth.

Q4FY25 Earnings Play : Auto OEMs: Ashok Leyland, TVS Motors. (M&M - Non-Coverage) Auto Ancillary: UNO Minda, Sansera Engineering Ltd, SSWL

Q4FY25 Earnings Play : Auto OEMs: Ashok Leyland, TVS Motors. (M&M - Non-Coverage) Auto Ancillary: UNO Minda, Sansera Engineering Ltd, SSWL

reported robust growth. Within categories, 2W OEMs reported flattish growth in domestic market owing to softer wedding seasons sales and moderation in urban markets. On the flipside, 2W exports recorded strong growth led by recovery in key markets and diversification towards different regions. Tractors dispatches grew in mid-teens aided by strong rabi outlook and positive farm...

In the long term, we prefer TVS Motors and Hero Motocorp in 2Ws; M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also keep a close watch on Ashok Leyland and Eicher (VECV) in the CV space for potential volume growth

We prefer TVS Motors and Hero Motocorp in 2Ws; M&M (non-coverage) as a play in the PV/LCV/tractor segment, followed by Maruti in PVs. We also keep a close watch on Ashok Leyland and Eicher (VECV) in the CV space for potential volume growth.