Top 3 auto stock picks ahead of November sales data
Within segments, Nuvama assessed that Hero MotoCorp, Eicher Motors–Royal Enfield and TVS Motor would lead two-wheelers in November.
- Nov 27, 2025,
- Updated Nov 27, 2025 8:57 AM IST
Nuvama Institutional Equities has identified Maruti Suzuki India Ltd, TVS Motor and Mahindra & Mahindra Ltd (M&M) as its three top picks among original equipment makers, reiterating a constructive stance on the automobile sector ahead of the November wholesale data.
The brokerage said it expected a broadly robust print for the month, with double-digit year-on-year growth across two-wheelers, commercial vehicles and passenger vehicles, alongside high single-digit expansion in tractors. It viewed the demand environment as being underpinned by supportive customer sentiment, improved affordability following GST cuts, firm rural consumption, interest rate reductions and ample financing availability. Exports are also expected to rise in double digits, led by markets across Asia, Africa and Latin America.
Within segments, Nuvama assessed that Hero MotoCorp, Eicher Motors–Royal Enfield and TVS Motor would lead two-wheelers, while Mahindra & Mahindra and Tata Motors Passenger Vehicles were positioned to outperform in passenger vehicles.
For two-wheelers, the brokerage projected domestic industry volumes to grow in double digits in November, with around fifteen per cent year-on-year expansion, supported by resilient post-festive momentum, healthy rural cash flows and the marriage season. It estimated wholesales to rise thirty-two per cent year-on-year for Hero MotoCorp to about 605,000 units, twenty-eight per cent for Eicher Motors–Royal Enfield to roughly 105,000 units, eighteen per cent for TVS Motor to around 475,000 units and four per cent for Bajaj Auto to nearly 440,000 units.
In commercial vehicles, Nuvama expected double-digit domestic growth of about fifteen per cent year-on-year, driven by the favourable impact of GST cuts—particularly for light commercial vehicles—better freight availability on the back of higher consumption demand, adequate financing and a low base. It pegged November wholesales at 16,700 units for Ashok Leyland, up eighteen per cent year-on-year; 32,500 units for Tata Motors’ CV division, also up eighteen per cent; and 6,500 units for Eicher Motors’ VECV business, up seventeen per cent.
Passenger vehicle volumes are expected to advance in double digits, with domestic growth of about thirteen per cent year-on-year, supported by GST rate cuts, better financing conditions, firm rural demand and new model launches. Nuvama estimated Mahindra’s overall auto volumes (including PVs, CVs and three-wheelers) at 93,000 units, up eighteen per cent year-on-year; Tata Motors Passenger Vehicles at 55,500 units, also up eighteen per cent; Maruti Suzuki at 210,000 units, up sixteen per cent; and Hyundai at 67,000 units, up nine per cent.
In tractors, the brokerage expected high single-digit domestic growth of about seven per cent year-on-year, driven by favourable farmer sentiment following GST-driven affordability gains and healthy crop cash flows, though it noted that terms of trade had turned slightly negative because of rising input costs. It forecast volumes of about 35,400 units for Mahindra Farm Equipment and 9,500 units for Escorts Kubota, each up around six per cent year-on-year.
Nuvama Institutional Equities has identified Maruti Suzuki India Ltd, TVS Motor and Mahindra & Mahindra Ltd (M&M) as its three top picks among original equipment makers, reiterating a constructive stance on the automobile sector ahead of the November wholesale data.
The brokerage said it expected a broadly robust print for the month, with double-digit year-on-year growth across two-wheelers, commercial vehicles and passenger vehicles, alongside high single-digit expansion in tractors. It viewed the demand environment as being underpinned by supportive customer sentiment, improved affordability following GST cuts, firm rural consumption, interest rate reductions and ample financing availability. Exports are also expected to rise in double digits, led by markets across Asia, Africa and Latin America.
Within segments, Nuvama assessed that Hero MotoCorp, Eicher Motors–Royal Enfield and TVS Motor would lead two-wheelers, while Mahindra & Mahindra and Tata Motors Passenger Vehicles were positioned to outperform in passenger vehicles.
For two-wheelers, the brokerage projected domestic industry volumes to grow in double digits in November, with around fifteen per cent year-on-year expansion, supported by resilient post-festive momentum, healthy rural cash flows and the marriage season. It estimated wholesales to rise thirty-two per cent year-on-year for Hero MotoCorp to about 605,000 units, twenty-eight per cent for Eicher Motors–Royal Enfield to roughly 105,000 units, eighteen per cent for TVS Motor to around 475,000 units and four per cent for Bajaj Auto to nearly 440,000 units.
In commercial vehicles, Nuvama expected double-digit domestic growth of about fifteen per cent year-on-year, driven by the favourable impact of GST cuts—particularly for light commercial vehicles—better freight availability on the back of higher consumption demand, adequate financing and a low base. It pegged November wholesales at 16,700 units for Ashok Leyland, up eighteen per cent year-on-year; 32,500 units for Tata Motors’ CV division, also up eighteen per cent; and 6,500 units for Eicher Motors’ VECV business, up seventeen per cent.
Passenger vehicle volumes are expected to advance in double digits, with domestic growth of about thirteen per cent year-on-year, supported by GST rate cuts, better financing conditions, firm rural demand and new model launches. Nuvama estimated Mahindra’s overall auto volumes (including PVs, CVs and three-wheelers) at 93,000 units, up eighteen per cent year-on-year; Tata Motors Passenger Vehicles at 55,500 units, also up eighteen per cent; Maruti Suzuki at 210,000 units, up sixteen per cent; and Hyundai at 67,000 units, up nine per cent.
In tractors, the brokerage expected high single-digit domestic growth of about seven per cent year-on-year, driven by favourable farmer sentiment following GST-driven affordability gains and healthy crop cash flows, though it noted that terms of trade had turned slightly negative because of rising input costs. It forecast volumes of about 35,400 units for Mahindra Farm Equipment and 9,500 units for Escorts Kubota, each up around six per cent year-on-year.