Automobiles & Auto Components share price target

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.

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...

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

Automobile Sector: Energy Supply Tightness & Geopolitical Risks

Demand for 2Ws remains robust aided by improved affordability Strong momentum in dispatches continued in Feb'26 ahead of festivities, amid ongoing wedding season and positive rural sentiments from robust crop cashflows, with sharper customer engagement and shift toward higher value models. PV growth is being driven by non-metro locations, although small car sales are seeing slower growth. Jan'26 inventory level of 32-34days vs. 3739days in Dec'25 indicate healthier channel discipline and efficient working capital. 2Ws remain strong with urban revival, although 350cc+ models see stagnation in volumes. CVs are on an upward trajectory from steady freight...

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.

Top Conviction Ideas - Auto & Auto Ancillaries

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.

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....

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.