Archive · 2 Sep 2026
Brokerages Favor Indian Auto Stocks as Truck Sales Surge
India’s vehicle market had a strong August, especially for trucks and two-wheelers.
Truck sales measured by industry wholesales rose about 43% according to Jefferies.
Some companies sold fewer vehicles than analysts expected, possibly because of supply and delivery problems.
Electric vehicles are becoming more popular in cars, scooters and three-wheelers.
Tata Motors Passenger Vehicles led electric-car sales in August with a 43% market share.
Nomura and Jefferies are brokerage firms that study companies for investors.
They do not completely agree on which auto stocks are the best choices.
They also warn that sales growth may slow because future comparisons will be against stronger sales periods and prices could rise.
India’s auto sector posted strong August growth, led by medium and heavy commercial vehicles, whose volumes rose 35% year on year.
Jefferies estimated truck industry wholesales increased about 43%, while two-wheeler wholesales rose 11% and registrations climbed 24%.
Electric-vehicle penetration reached 7.2% in passenger vehicles, 10.7% in two-wheelers and more than 50% in three-wheelers.
Nomura preferred Mahindra & Mahindra, Hyundai Motor India, Tata Motors Commercial Vehicles, TVS Motor Company and Sona Comstar.
Jefferies favored Eicher Motors, TVS Motor Company and Mahindra & Mahindra, but rated Hyundai Motor India and Tata Motors Passenger Vehicles Underperform.
- Who
- Indian automobile manufacturers, along with the brokerages Nomura and Jefferies.
- What
- The auto sector recorded strong August sales, while Nomura and Jefferies identified preferred auto stocks and warned of risks ahead.
- When
- August; Jefferies expects comparisons to become tougher particularly from October onward.
- Where
- India.
- Why
- Demand remained strong across several vehicle categories, electric-vehicle adoption increased and commercial-vehicle sales accelerated, although supply constraints and a higher comparison base may affect future growth.
Nomura’s preferred bets
Jefferies’ preferred bets
Top auto manufacturers
Nomura’s preferred bets
Nomura preferred Mahindra & Mahindra, Hyundai Motor India, Tata Motors Commercial Vehicles, TVS Motor Company and Sona Comstar.
Jefferies’ preferred bets
Jefferies preferred Eicher Motors and TVS Motor Company, followed by Mahindra & Mahindra.
Views on passenger-vehicle companies
Nomura’s preferred bets
Nomura included Hyundai Motor India among its preferred stocks and expects exposure to electric vehicles and new model launches to support outperformance.
Jefferies’ preferred bets
Jefferies rated Hyundai Motor India and Tata Motors Passenger Vehicles Underperform.
Outlook for growth
Nomura’s preferred bets
Nomura highlighted strong demand momentum across most auto categories and viewed supply and logistics issues as the main reason some companies missed expectations.
Jefferies’ preferred bets
Jefferies also saw strong August demand but warned that a high comparison base, especially from October, could make growth less impressive.
- Truck wholesales
- Industry wholesales grew about 43% year on year in August, according to Jefferies.
- Medium and heavy commercial vehicles
- Volumes rose 35% year on year, above Nomura’s 25% estimate.
- Passenger vehicles
- Volumes increased 36% year on year, compared with Nomura’s 41% estimate.
- Electric-vehicle penetration
- Penetration reached 7.2% in passenger vehicles, 10.7% in two-wheelers and more than 50% in three-wheelers.
- Electric-car leader
- Tata Motors Passenger Vehicles held a 43% electric passenger-vehicle market share in August, according to Jefferies.
- Nomura preferences
- Mahindra & Mahindra, Hyundai Motor India, Tata Motors Commercial Vehicles, TVS Motor Company and Sona Comstar.
- Jefferies preferences
- Eicher Motors and TVS Motor Company, followed by Mahindra & Mahindra; it rated Hyundai Motor India and Tata Motors Passenger Vehicles Underperform.