Nuvama Forecasts India Auto Sector Growth
Analysis based on 6 articles · First reported May 29, 2026 · Last updated May 29, 2026
The positive forecast for India's automotive sector, particularly for passenger vehicles and two-wheelers, suggests a favorable outlook for publicly traded companies like Maruti Suzuki, Tata Motors, and TVS Motor Company. Increased sales volumes and sustained growth are likely to boost investor confidence and potentially lead to stock price appreciation for these entities. However, some companies like Hyundai Motor Company may face headwinds due to export pressures from the Middle East.
Nuvama Wealth Management's research report forecasts sustained growth for India's automotive sector over FY26-28E, with passenger vehicles (PVs) and two-wheelers (2Ws) expected to outpace heavy commercial vehicles (MHCVs) and tractors. The domestic industry volume CAGR is projected at 8% for PVs, 6% for 2Ws, 2% for MHCVs, and 1% for tractors. The near-term outlook for May 2026 indicates a broad-based wholesale uptrend driven by domestic demand factors such as better affordability, new products, seasonal wedding demand, and ample financing availability. Export growth is expected to remain positive for most OEMs despite some pressure on shipments to the Middle East. Specific companies like Tata Motors Passenger Vehicles (TMPV) are projected to see 35% YoY growth, Maruti Suzuki (MSIL) 25%, Mahindra & Mahindra (MM-Auto) 15%, and Hyundai Motor Company 7%. In the two-wheeler segment, TVS Motor Company (TVSL), Eicher Motors (EIM-RE), Bajaj Auto (BJAUT), and Hero MotoCorp (HMCL) are all expected to experience double-digit growth. Tractor volumes are also projected to continue their uptrend, while commercial vehicle growth is anticipated to moderate due to fuel prices and freight uncertainties.
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