El Niño Risks Cloud Auto Sale Outlook; M&M, Maruti Still Among Promising Bets

India’s auto retail momentum extended into May on a low base, with Vahan data pointing to resilient domestic demand despite geopolitical headwinds. Ashwin Patil, Head of Fundamental Research, LKP Securities told NDTV that the growth in the auto sector is led by EVs and premium two-wheelers, alongside solid traction in new passenger vehicle launches, while lower dealer inventories signal firmer wholesales. However, with El Niño risks, a high base and cost pressures looming, the first half is expected to outperform the second.