6 hrs ago
Festive Season Could Lift Maruti, TVS and Mahindra Stocks
Motilal Oswal thinks some vehicle companies could benefit from the festive season.
Festivals such as Diwali, Dussehra and Navratri often bring higher vehicle sales.
Companies are also increasing inventory so more vehicles are available to buyers.
Maruti Suzuki, TVS Motor and Mahindra & Mahindra were among the brokerage’s preferred vehicle makers.
Maruti Suzuki was given the largest expected gain of 41% from its listed market price.
Mahindra & Mahindra was assigned a possible gain of 36%.
TVS Motor was given a smaller expected gain of 7%.
Car sales increased in August 2026, and Maruti Suzuki gained market share.
Motilal Oswal remains bullish on Maruti Suzuki India, TVS Motor and Mahindra & Mahindra ahead of the festive season.
The brokerage expects increased inventory and festive demand to support two-wheeler and passenger-vehicle volumes.
Maruti Suzuki received the highest target-price upside at 41%, followed by Mahindra & Mahindra at 36%.
TVS Motor was rated Buy with a 7% target upside, matching Bajaj Auto’s projected upside.
Car volumes rose 20.4% in August 2026, while Maruti Suzuki’s market share increased to 72.9%.
- Who
- Motilal Oswal, along with the vehicle makers Maruti Suzuki India, TVS Motor and Mahindra & Mahindra.
- What
- The brokerage maintained Buy ratings and published target prices for selected automobile stocks ahead of the festive season.
- Where
- The stock prices and market-share data concern the Indian automobile market and the Bombay Stock Exchange.
- When
- Ahead of the festive season; the cited car-volume data covers August 2026, with stock prices reported from Tuesday.
- Why
- Festive demand and increased vehicle inventory are expected to support two-wheeler and four-wheeler sales.
Bullish Case
Cautionary Considerations
Festive-season demand
Bullish Case
Motilal Oswal expects increased inventory and festivals to boost vehicle volumes, supporting selected original equipment manufacturers.
Cautionary Considerations
The article identifies the expected festive-season boost as a forecast rather than a guaranteed outcome.
Stock upside
Bullish Case
The brokerage’s targets imply potential upside of 41% for Maruti Suzuki, 36% for Mahindra & Mahindra and 7% for TVS Motor.
Cautionary Considerations
The cited recent performance was mixed: Maruti Suzuki and Mahindra & Mahindra closed lower on Tuesday, while Maruti Suzuki had negative reported one- and three-year returns.
Segment performance
Bullish Case
Maruti Suzuki gained market share as car volumes increased, and TVS Motor continued to gain in two-wheelers.
Cautionary Considerations
Honda Motorcycles and Scooter India underperformed in the two-wheeler segment, while Hyundai’s year-to-date market share declined marginally.
Key facts
- Maruti Suzuki rating
- Buy; target price ₹17,064 versus a cited price of ₹12,071; projected upside 41%.
- TVS Motor rating
- Buy; target price ₹4,470 versus a cited price of ₹4,160; projected upside 7%.
- Mahindra & Mahindra rating
- Buy; target price ₹4,108 versus a cited price of ₹3,031; projected upside 36%.
- August 2026 car volumes
- Car volumes increased 20.4%.
- Maruti Suzuki market share
- Rose by about 665 basis points to 72.9%.
- TVS Motor stock performance
- Closed 0.41% higher at ₹4,100 on Tuesday; reported one-year return was 19%.
- Maruti Suzuki stock performance
- Closed 1.17% lower at ₹11,899 on Tuesday; reported one-year return was negative 25%.
Quotes
Motilal Oswal
Brokerage cited in the report discussing car-volume and market-share performance
“Key outperformers in this segment were MSIL (+29.4%), HMIL (+29.8%), and Honda (+84%). As a result, MSIL witnessed a ~665bp increase in market share to 72.9%, while Honda maintained its market share at ~3%. Hyundai saw a marginal market share decrease to 12.2% on a YTD basis.”
livemint.com
Sources
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