Archive · 8 Oct 2026
Nomura Highlights EV Growth, Names Auto Picks Ahead of Results
Nomura looked at car and two-wheeler companies ahead of their results.
It said more people are choosing electric vehicles, and expects that trend to continue.
Nomura thinks companies with strong electric-vehicle products and technology may do better as the market changes.
It named Mahindra & Mahindra and Ather Energy as its preferred picks in their vehicle categories.
It also kept Buy ratings on Hyundai Motor India and TVS Motor Company.
The brokerage expects higher material costs to squeeze some companies’ profits in the near term.
It says the effect may be greater for commercial vehicles and tractors, while two-wheeler makers are expected to pass on much of the cost pressure.
Passenger-vehicle makers may also face margin pressure because competition is intense.
Nomura expects margins to improve as vehicle price increases catch up with commodity costs.
Nomura said EV penetration exceeded 7% for passenger vehicles and 11% for two-wheelers, and expects adoption to keep rising.
Mahindra & Mahindra and Ather Energy remain Nomura’s top picks among passenger-vehicle and two-wheeler makers, respectively.
Nomura maintained Buy ratings on Hyundai Motor India and TVS Motor Company, and also favored Sona BLW Precision Forgings and Uno Minda.
The brokerage set target prices of Rs 1,926 for Ather, Rs 2,498 for Hyundai Motor India, Rs 4,875 for Mahindra & Mahindra and Rs 4,594 for TVS Motor.
Elevated commodity costs are expected to pressure Q2FY27F margins, with the impact differing across vehicle segments.
- Who
- Nomura and the auto manufacturers and suppliers it assessed.
- What
- Nomura shared EV-market observations, stock ratings, target prices and expectations for Q2FY27F margins.
- When
- Ahead of Q2 results; the outlook discusses Q2FY27F and 2HFY27F.
- Why
- Nomura assessed rising EV adoption and commodity-cost inflation, which it expects to affect growth and margins.
- EV penetration
- Above 7% for passenger vehicles and above 11% for two-wheelers, according to Nomura.
- Top picks
- Mahindra & Mahindra in passenger vehicles and Ather Energy in two-wheelers.
- Ather Energy target
- Rs 1,926
- Hyundai Motor India target
- Rs 2,498
- Mahindra & Mahindra target
- Rs 4,875
- TVS Motor target
- Rs 4,594
- Expected near-term headwind
- Elevated commodity costs, with the full impact not yet passed through to original equipment manufacturers.