Auto stocks to buy ahead of September, Q2 auto sales data
Ahead of auto sales data, Nomura said it prefers Mahindra & Mahindra Ltd (M&M), Hyundai Motor India Ltd, Ather Energy Ltd and TVS Motor Ltd within its coverage universe.
- Sep 29, 2026,
- Updated Sep 29, 2026 12:50 PM IST
Dealer checks by brokerages suggest strong retail auto sales growth in September across key segments, with electric vehicles (EVs) in short supply. Passenger vehicles and medium and heavy commercial vehicles (M&HCVs) are seen clocking over 20 per cent sales growth each during the month. Two-wheeler sales are seen growing in single digits, while tractor sales are seen declining over 20 per cent, analysts said.
Ahead of auto sales data, Nomura said it prefers Mahindra & Mahindra Ltd (M&M), Hyundai Motor India Ltd, Ather Energy Ltd and TVS Motor Company Ltd within its coverage universe. The target for Ather Energy is set at Rs 1,926, Hyundai Motor at Rs 2,498, Mahindra and Mahindra at Rs 4,875 and TVS Motor at Rs 4,594.
Post a strong H2FY26, wholesales across segments have witnessed strong double-digit growth in FY27, on the back of lower base, strong retails, which have also seen double-digit growth and lean channel inventory, said MOFSL.
"Due to the low base of Q2 and channel push ahead of festive, volumes so far in Q2FY27 have been strong and is expected to be the same for September on account of strong retails and lean channel inventory (especially for PVs)," the domestic brokerage said.
MOFSL said while OEMs and the ancillaries have guided for continued pressure from commodities, the majority impact of the same has already been reflected in Q1 results. It said the price hikes taken by OEMs to offset this cost should cushion the blow from Q2.
"As a result, we expect margins for the sector to revive gradually from Q2 onwards. Concerns that remain monitorable are the probable impact of El Niño expected in the current year and the escalation of the West Asia crisis again. In this scenario, OEMs with a healthy launch pipeline are likely to be preferred over others. Our top OEM picks are Maruti Suzuki (MSIL), TVS, M&M, and Bajaj Auto. Among auto ancillaries, our top picks are HFL, MSWIL, and SAMIL," MOFSL said.
Choice Institutional Equities said the outlook for Q2FY27 is positive supported by strong demand, lower base for July–September 2026 and the festival-led demand support in the second half of the quarter.
"The growth for September, looks exceptionally high on a low base, as buyers deferred purchases last September until the revised GST rates took effect on September 22, 2025. We expect strong but a more moderate full-month growth (30 per cent), supported by a low base in September 2025, steady consumer sentiment, recent model launches, strong EV adoption, softer interest rates and improved affordability following GST rationalisation," it said.
Dealer checks by brokerages suggest strong retail auto sales growth in September across key segments, with electric vehicles (EVs) in short supply. Passenger vehicles and medium and heavy commercial vehicles (M&HCVs) are seen clocking over 20 per cent sales growth each during the month. Two-wheeler sales are seen growing in single digits, while tractor sales are seen declining over 20 per cent, analysts said.
Ahead of auto sales data, Nomura said it prefers Mahindra & Mahindra Ltd (M&M), Hyundai Motor India Ltd, Ather Energy Ltd and TVS Motor Company Ltd within its coverage universe. The target for Ather Energy is set at Rs 1,926, Hyundai Motor at Rs 2,498, Mahindra and Mahindra at Rs 4,875 and TVS Motor at Rs 4,594.
Post a strong H2FY26, wholesales across segments have witnessed strong double-digit growth in FY27, on the back of lower base, strong retails, which have also seen double-digit growth and lean channel inventory, said MOFSL.
"Due to the low base of Q2 and channel push ahead of festive, volumes so far in Q2FY27 have been strong and is expected to be the same for September on account of strong retails and lean channel inventory (especially for PVs)," the domestic brokerage said.
MOFSL said while OEMs and the ancillaries have guided for continued pressure from commodities, the majority impact of the same has already been reflected in Q1 results. It said the price hikes taken by OEMs to offset this cost should cushion the blow from Q2.
"As a result, we expect margins for the sector to revive gradually from Q2 onwards. Concerns that remain monitorable are the probable impact of El Niño expected in the current year and the escalation of the West Asia crisis again. In this scenario, OEMs with a healthy launch pipeline are likely to be preferred over others. Our top OEM picks are Maruti Suzuki (MSIL), TVS, M&M, and Bajaj Auto. Among auto ancillaries, our top picks are HFL, MSWIL, and SAMIL," MOFSL said.
Choice Institutional Equities said the outlook for Q2FY27 is positive supported by strong demand, lower base for July–September 2026 and the festival-led demand support in the second half of the quarter.
"The growth for September, looks exceptionally high on a low base, as buyers deferred purchases last September until the revised GST rates took effect on September 22, 2025. We expect strong but a more moderate full-month growth (30 per cent), supported by a low base in September 2025, steady consumer sentiment, recent model launches, strong EV adoption, softer interest rates and improved affordability following GST rationalisation," it said.