Brokerages retained a positive view on the Indian auto sector after June sales data showed healthy demand across passenger vehicles, two-wheelers, commercial vehicles and tractors, although wholesale trends continued to diverge because of company-specific factors.
JPMorgan said retail sales growth remained broad-based across segments, although wholesale numbers were affected by company-specific factors. The brokerage noted that Maruti Suzuki's wholesale volumes were in line with the industry. In passenger vehicles, Maruti Suzuki and Tata Motors led retail growth, while Eicher Motors and TVS Motor outperformed in two-wheelers.
Macquarie said demand momentum stayed strong in June, led by passenger vehicles, with two-wheelers also remaining resilient. While first-quarter margins are expected to stay under pressure, the brokerage expects easing commodity costs to support margins from the second quarter. It continues to prefer TVS Motor and M&M.
Morgan Stanley also highlighted healthy retail demand across passenger vehicles, two-wheelers, commercial vehicles and tractors, adding that improving EV penetration and lower commodity costs could support profitability going forward. It reiterated Maruti Suzuki, M&M and TVS Motor as its preferred picks.
Jefferies estimated wholesale growth of 38% for trucks, 23% for passenger vehicles and 14% for tractors in June, while noting that vehicle registrations grew 20-38% across segments, supported by rising EV adoption.
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JPMorgan on Auto
- Broad-based retail growth continued across segments.
- Wholesale sales remained volatile due to company-specific factors.
- Maruti's wholesale sales were in line with the industry, while its retail sales outperformed.
- Hero remained the laggard, with wholesale sales impacted by a fire at one of its supplier's manufacturing facilities.
- M&M's wholesale performance improved, while retail trends were mixed.
- Maruti and Tata Motors outperformed retail growth in passenger vehicles, while Eicher Motors and TVS Motor outperformed in two-wheeler retail sales.
- Tata Motors CV and M&M outperformed in the heavy commercial vehicle segment.
Macquarie on Auto Sector
- Demand momentum remained strong in June 2026.
- Passenger vehicles continued to lead demand growth, while two-wheeler demand stayed resilient.
- Wholesale sales remained firm, and retail volumes confirmed healthy underlying demand.
- Q1 margins are likely to remain muted, with focus shifting to the Q2 margin outlook amid easing commodity costs.
- TVS Motor and M&M remain the top picks.
Morgan Stanley on Auto Sector
- Retail sales remained healthy across passenger vehicles, two-wheelers, commercial vehicles and tractors in June 2026.
- EV penetration continued to improve across segments.
- Falling commodity costs and healthy volume growth could support margin improvement from Q2.
- Maruti, M&M and TVS remain the preferred Overweight picks.
Jefferies on Auto Sector
- The Indian auto industry reported strong volume growth across segments in June.
- Estimates wholesale growth of 38% YoY for trucks, 23% YoY for passenger vehicles and 14% YoY for tractors.
- Vehicle registration growth accelerated to 20–38% YoY across segments, with EVs gaining market share in both two-wheelers and passenger vehicles.
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