Auto stock: Best performer of 2025 just received a 'Buy' call
The stock beat Hero MotoCorp's 29 per cent return in 2025 so far. Bajaj Auto gained a mere 3 per cent during the same period. Hyundai Motor, Maruti Suzuki and Eicher Motors Ltd gained 33-37 per cent.
- Sep 5, 2025,
- Updated Sep 5, 2025 10:03 AM IST
Auto stock TVS Motor Company Ltd, which led the BSE Auto index in terms of returns this Calendar, could have further upside from the recently announced GST cuts, Nomura India said, as it suggested 'Buy' rating on the stock with an unchanged target of Rs 3,949 apiece. TVS Motor shares are up 45 per cent in 2025 so far. This is against a 28.58 per cent jump in Hero MotoCorp shares and a mere 3 per cent rise in shares of Bajaj Auto. Hyundai Motor India Ltd, Maruti Suzuki India Ltd and Eicher Motors Ltd gained 33-37 per cent during the same period. Nomura said TVS Motor has strengthened its scooter portfolio with two back-to-back launches within a week. It highlighted the launch of TVS Orbiter, an electric scooter positioned above the iQube, at an introductory price of Rs 99,999 per vehicle. Besides, the two-wheeler maker also launched another scooter, the TVS NTorq 150, India’s first hyper sports scooter, priced at Rs 1,19,000 (ex-showroom, all-India).
The strategy highlights TVS’s intent to scale in the 2W EV space while simultaneously expanding its premium ICE scooter franchise, Nomura said.
"The Orbiter represents TVS’s strategy to strengthen its urban EV portfolio by offering a feature-rich, affordable scooter at a psychological sub-INR100k mark. We believe Orbiter’s 845mm long seat + 34L boot combo is a strong USP, which suggests that TVS has paid attention to everyday comfort. Moreover, the vehicle’s design feels fresh, with TVS designers opting for a modern and minimalist styling approach," Nomura said.
The foreign brokerage said TVS' vehicles competes directly with Ather Rizta, Ola S1X, Vida VX2, Chetak 3503, among others, in the segment. The NTorq 150 enhances TVS’s ICE scooter portfolio and strengthens the NTorq franchise, which already has a large base of over 2mn customers.
The new 150cc offering directly targets the performance-scooter category, competing with Aprilia SR160 and Yamaha Aerox 155, but is priced slightly more attractively. Nomura said most scooters in India are concentrated in the 100–125cc segment, with limited options in the 150cc+ space, creating an opportunity for TVS to target aspirational Gen-Z buyers seeking sporty styling combined with the practicality of a scooter at an attractive price point.
"The strong feature set (ABS, traction control, connected TFT cluster) should also aid differentiation in the segment. Overall, the model could deliver steady incremental volumes in the domestic market, while also creating scope for exports over time. We expect TVS to outperform the 2W industry, led by the success of recent launches, rising scooter share and healthy traction in the export markets," Nomura said.
The success of upcoming EV 2W/3W launches and premium Norton motorcycles could result in further upside to estimates, it said.
"We estimate TVS’ EV volumes to grow 42 per cent/24 per cent YoY to 387k/480k over FY26/27F, supported by Orbiter launch, and TVS ICE scooter volumes to grow 15 per cent/10 per cent YoY to 1766k/1941k over FY26/27F. We estimate overall domestic TVS volumes to rise by 14 per cent/10 per cent over FY26/27F and Ebitda margins to rise from 12.3% in FY25 to 15.1% by FY27F," Nomura said.
Auto stock TVS Motor Company Ltd, which led the BSE Auto index in terms of returns this Calendar, could have further upside from the recently announced GST cuts, Nomura India said, as it suggested 'Buy' rating on the stock with an unchanged target of Rs 3,949 apiece. TVS Motor shares are up 45 per cent in 2025 so far. This is against a 28.58 per cent jump in Hero MotoCorp shares and a mere 3 per cent rise in shares of Bajaj Auto. Hyundai Motor India Ltd, Maruti Suzuki India Ltd and Eicher Motors Ltd gained 33-37 per cent during the same period. Nomura said TVS Motor has strengthened its scooter portfolio with two back-to-back launches within a week. It highlighted the launch of TVS Orbiter, an electric scooter positioned above the iQube, at an introductory price of Rs 99,999 per vehicle. Besides, the two-wheeler maker also launched another scooter, the TVS NTorq 150, India’s first hyper sports scooter, priced at Rs 1,19,000 (ex-showroom, all-India).
The strategy highlights TVS’s intent to scale in the 2W EV space while simultaneously expanding its premium ICE scooter franchise, Nomura said.
"The Orbiter represents TVS’s strategy to strengthen its urban EV portfolio by offering a feature-rich, affordable scooter at a psychological sub-INR100k mark. We believe Orbiter’s 845mm long seat + 34L boot combo is a strong USP, which suggests that TVS has paid attention to everyday comfort. Moreover, the vehicle’s design feels fresh, with TVS designers opting for a modern and minimalist styling approach," Nomura said.
The foreign brokerage said TVS' vehicles competes directly with Ather Rizta, Ola S1X, Vida VX2, Chetak 3503, among others, in the segment. The NTorq 150 enhances TVS’s ICE scooter portfolio and strengthens the NTorq franchise, which already has a large base of over 2mn customers.
The new 150cc offering directly targets the performance-scooter category, competing with Aprilia SR160 and Yamaha Aerox 155, but is priced slightly more attractively. Nomura said most scooters in India are concentrated in the 100–125cc segment, with limited options in the 150cc+ space, creating an opportunity for TVS to target aspirational Gen-Z buyers seeking sporty styling combined with the practicality of a scooter at an attractive price point.
"The strong feature set (ABS, traction control, connected TFT cluster) should also aid differentiation in the segment. Overall, the model could deliver steady incremental volumes in the domestic market, while also creating scope for exports over time. We expect TVS to outperform the 2W industry, led by the success of recent launches, rising scooter share and healthy traction in the export markets," Nomura said.
The success of upcoming EV 2W/3W launches and premium Norton motorcycles could result in further upside to estimates, it said.
"We estimate TVS’ EV volumes to grow 42 per cent/24 per cent YoY to 387k/480k over FY26/27F, supported by Orbiter launch, and TVS ICE scooter volumes to grow 15 per cent/10 per cent YoY to 1766k/1941k over FY26/27F. We estimate overall domestic TVS volumes to rise by 14 per cent/10 per cent over FY26/27F and Ebitda margins to rise from 12.3% in FY25 to 15.1% by FY27F," Nomura said.