Automobiles & Auto Components share price target

June 2026 reinforced the industry’s resilient growth trajectory amid evolving consumer preferences and macroeconomic tailwinds.

India's automotive OEMs posted healthy volume prints for June 2026 with volumes growing double digit on YoY basis for most of the OEMs. GST 2.0 tailwinds continue to drive underlying demand. In terms of segments, CV surprised positively wherein healthy growth was witnessed in MHCV Trucks segment. Tata Motors PV set the bar high, outperforming in the PV space while Tata Motors CV led the growth charge in the CV segment. TVS motors outperformed in the 2W domain. Exports continue to do well. - Wholesale volume prints for the month of...

Domestic Auto Sales Maintain Momentum; External Risks Keep Outlook Cautious

India’s auto industry sustained its positive growth momentum through May 2026, navigating the traditionally softer May period with steady replacement demand, improving rural sentiment, and structural tailwinds from GST reforms and rising incomes.

PVs see strong growth in both domestic and export market Growth in 2Ws driven by scooters, EVs and exports Auto dispatches in May'26 saw sustained volume growth across most segments, although some sub-segments saw moderation. PVs reported growth in 20s, while 2Ws saw stable growth as most OEMs are in the midst of increasing capacities to meet the sustained retail demand while mitigating labor shortages, and disruptions in logistics and supply chain. CV industry reported mixed performance with subdued growth seen for MHCVs, while LCVs continued strong momentum. CV industry is expected to see...

Top Conviction Ideas - Automobile

We prefer Bajaj Auto and Eicher Motors in 2W, M&M (non-coverage) as a play in the PV/LCV/Tractor segment, followed by Maruti in PVs. We also like Tata Motors (non-coverage) in the CV space, followed by a close watch on Eicher (VECV) for any market share gains.

India's automotive OEMs posted healthy volume prints for May 2026 with volumes growing double digit on YoY basis. GST 2.0 tailwinds continue to drive underlying demand. In terms of segments, PV, 2W & Tractors did well while CV space did see some moderation with LCV segment outperforming the M&HCV domain. TMPV set the bar high, outperforming in the PV space while M&M led the growth charge in the Tractor segment and also outperformed in the CV segment. TVS motors outperformed in 2W domain. - Wholesale volume prints for the month of...

India’s auto industry started FY27 on a steady footing in April 2026, with demand holding up across most key segments even as volumes normalized after the fiscal year-end push in March.

In the 2-W pack, TVS motors continued with its steady growth growing ~6% at 4.5 lakh units (with flat YoY growth in exports). While Eicher Motors (Royal Enfield) reported healthy growth of 31% YoY at ~1.1 lakh units. Bajaj Auto outperformed with a 38% YoY growth supported by exports. Volumes recovered at the industry leader on an optical lower base due to production cut in the base month (April 2025). In the PV space, demand was healthy tracking positive momentum post GST 2.0 reforms. Maruti Suzuki reported volume growth of ~34% YoY at 2.4...

Delhi Government's Draft EV Policy - Automobile Sector Update

RM costs and supply chain constraints pose margin pressure Q4FY26 saw double-digit wholesale volume growth as sentiments remained positive post GST 2.0 rationalization, earlier festivities, wedding season, easier financing, growth in overall economy, and improved rural sentiments driven by good rainfall. Retail demand remained intact even as most OEMs hiked prices, usually done every new CY, with indication of taking further hikes if RM and fuel prices remain inflated. Improved scale and mix, new model launches/ facelifts, and sustained exports with INR depreciation further helped topline. The impact of geopolitical tensions was very...

Our Top Earnings Plays: Auto OEMs: TVS Motors, Eicher Motors, (M&M - Non-Coverage) Auto Ancillary: Sansera Engineering Ltd, Minda Corporation.

FY26 concluded on a strong note as Mar'26 wholesale volumes saw sustained momentum across segments amid geopolitical tensions. However, continued gas and supply chain constraints might result in production cuts and cost pressure as the shortterm sentiment remains cautiously optimistic. PV growth during the month continued to be driven by non-metro locations, with SUVs still gaining preference. Inventory was 27-29 days in Feb'26, lower than 32-34days in Jan'26, indicating better wholesaleretail alignment. 2W growth remained broad based with urban slightly outpacing rural. MHCV growth slowed with the bus segment seeing decline. Replacement demand and government projects could be offset somewhat by supply chain risks and the impact on select sectors. Tractor growth was strong due to Chaitra Navratri and positive rabi...

India's auto industry closed FY26 on a strong and broad-based note in March, sustaining healthy double-digit year-on-year retail growth across passenger vehicles, two-wheelers, and commercial vehicles.

Strong Volume Growth Across Segments Amid Near-Term Macro Pressures, with Long-Term Demand Intact

In the 2-W pack, TVS motors continued with its healthy growth and outperformed its peers growing ~24.5% at 4.98 lakh units (with 23% YoY growth in exports). While Eicher Motors (Royal Enfield) reported healthy growth of 11.2% YoY at ~1.1 lakh units. In PV space, demand was healthy tracking positive momentum post GST 2.0 reform. Maruti Suzuki reported volume growth of ~17% YoY at 2.2 lakh units while M&M saw a healthy growth of 25% at ~60k units. Tata Motors PV EV volumes stood at 9,494 units (up ~77% YoY) amidst an overall...

Automobile Sector: Energy Supply Tightness & Geopolitical Risks

We prefer TVS Motors and Bajaj Auto in 2Ws (Eicher seems 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.