Prefer Maruti Suzuki, Bajaj Auto, Tata Motors: MOSt

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26 Aug, 2025 12:21

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Auto sector overview and outlook by Motilal OswalM&HCV recovery on back of replacement demand; 2Ws under pressure on deficient rainfallWe expect demand momentum to pick up further pace in 2HFY16 on government reforms initiatives and on interest rate cycle turning favorable. Lead indicators of CV industry such as freight rates, fleet operators’ utilization and further correction in fuel prices are positive factors for CV. LCVs also are showing initial signs of bottoming out with de-growth moderating, passenger LCV has shown a growth of 6% YoY. 2W demand is slowing down, especially in rural markets, with motorcycle sales down 4% YoY in FY16YTD, while scooters continue grew at ~9%. Tractors (M&M) de-grew by ~21% in FY16YTD, impacted by deficient rainfall in most part of country.Valuation and view"Demand environment and changing competitive landscape in the auto sector would be the key determinants of stock performance. Prefer Maruti Suzuki, Bajaj Auto and Tata Motors in large caps and Ashok Leyland, Eicher Motors and TVS Motor in mid-caps", says Motilal Oswal research.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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