Automobiles & Auto Components share price target

growth after the GST 2.0 rate cut as overall sentiments remain positive. Festivals, marriage season, rural traction from robust rabi acreage and near completion of a good Kharif harvest, discounts on MY25 models, reduced interest rates amongst others were the driving factors. PV dealer inventory was at healthy levels with new model launches and deliveries; only Maruti Suzuki showed weak sales. 2Ws and 3Ws maintained strong momentum. Announcement/ anticipation of price hikes by OEMs also led to some prebuying in Jan'26. Tractor volumes surged aided by government policies and...

India's automotive OEMs posted healthy volume prints for January 2026. It was primarily driven by positive demand conditions amidst tailwinds from GST 2.0 rate cut, which lowered vehicle prices and boosted consumer sentiment. OEM wholesale sales volume for January 2026 came in healthy with CV & Tractor segment outperforming peers. CV space reported healthy volume prints for the month of January'26 with continued recovery visible across M&HCV & LCV segments. TMPV set the bar high, outperforming in the PV space while M&M continued with its dominance in...

Auto OEMs: Maruti Suzuki, Eicher Motors, Bajaj Auto. (M&M - Non-Coverage) Auto Ancillary: Sansera Engineering Ltd, Minda Corporation.

India’s automobile sector closed calendar year 2025 on a strong and steady note, as December sales reflected both sustained post-festive momentum and the normalization of market activity after two record-breaking months.

We prefer TVS Motors 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.

India's automotive OEMs posted healthy volume prints for December 2025. It was primarily driven by sustained demand momentum led by GST rate cuts, which lowered the vehicle prices. CV & Tractor segment outperformed peers for Dec'25. CV space reported healthy volume prints with continued recovery visible across the M&HCV & LCV segments. M&M set the bar high, outperforming in the PV space while continuing with its dominance in Tractor segment. TVS motors continued to perform well in the 2W domain while Ashok Leyland outperformed in the CV space....

The Indian automobile industry is poised for a healthy performance in Q3FY26, supported by sustained festive season momentum spilling over from October-November, favourable government policies including GST rationalisation on certain segments, improving rural incomes due to a normal monsoon, and gradual easing of interest rates.

India’s automobile industry saw a mixed but improving performance in Q2FY26, supported by steady demand in Passenger Vehicles (PV), a strong recovery in exports across segments, and stable momentum in Two-Wheelers (2W).

In November 2025, India's auto industry maintained solid growth momentum, capitalizing on strong festive demand in October and the long-term positive effects of GST 2.0 tax cuts. Sales of passenger vehicles, two-wheelers, commercial vehicles, and tractors all increased year on year, showing strong domestic demand, improving rural sentiment, and rising exports.

Maruti Suzuki’s Nov’25 performance reinforced the steady recovery in demand, with domestic volumes stabilizing and exports continuing to deliver strong momentum. The broader quarterly performance reflected resilient revenue growth supported by healthy exports and improved realizations, although margins remained under pressure due to elevated operating and input costs.

We prefer TVS Motors, Hero MotoCorp 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.

India's automotive OEMs posted healthy volume prints for November 2025. It was primarily driven by sustained demand momentum post festive season and amplified by GST 2.0 reforms, which lowered vehicle prices and boosted consumer sentiment. OEM wholesale sales volume for November 2025 came in healthy with PV & CV segment outperforming peers. CV space reported healthy volume prints for the month of November'25 with continued recovery visible across M&HCV & LCV segments. Maruti set the bar high, outperforming in the PV space while M&M continued with its...

Top Conviction Ideas - Auto & Auto Ancillaries

We prefer TVS Motors, Hero Motocorp 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.

India's automotive OEMs posted record-high volume prints for October 2025, driven by robust festive season demand and amplified by the GST 2.0 reforms which lowered vehicle prices and boosted consumer sentiment. OEM wholesale sales volume for October 2025 came in healthy with PV & tractor segment outperforming peers. CV space reported healthy volume prints for the month of October 2025 with recovery visible across M&HCV as well as LCV segment. M&M set the bar high, outperforming in both PV & Tractor segment, while Royal Enfield (Eicher motors) lead the growth...

Auto OEMs: TVS Motors, Eicher Motors, Hero MotoCorp. (M&M - Non-Coverage) Auto Ancillary: Sansera Engineering Ltd, Endurance Technology, Minda Corporation