Auto Sales to Post Double-Digit Wholesale Growth in February, Driven by Strong Retail Demand

Automotive Wholesale Numbers Expected to Witness Double-Digit Growth in February

Key Highlights:

• Analysts expect double-digit growth across segments in February, driven by strong retail demand momentum.
• Motilal Oswal forecasts 25%, 18%, 26%, and 39% growth in wholesale volumes for two-wheelers, passenger vehicles, commercial vehicles, and tractors, respectively.

Passenger Vehicle Segment:

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• Tata Motors is expected to outperform the market, driven by new launches such as the Sierra and the Punch EV.
• Motilal Oswal projects Tata Motors to report 67,205 units, a 43.6% YoY increase.
• Mahindra & Mahindra is expected to post a 25.7% YoY jump in sales to 1,37,329 units, driven by new launches and strong demand for EVs.
• Maruti Suzuki is expected to report a 12.4% YoY growth at 2,24,066 units, despite capacity constraints.

Two-Wheeler Segment:

• Eicher Motors' Royal Enfield is expected to increase 16% YoY to 1,05,193 units.
• TVS Motor is seen rising 24.6% YoY to 5,03,222 units.
• Hero MotoCorp and Bajaj Auto are expected to report 28.2% and 23.5% growth in wholesale dispatches, respectively.

Commercial Vehicle Segment:

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• The top three CV OEMs are expected to post around 26% aggregate volume growth for the month.

Tractor Segment:

• The top two OEMs are expected to post about 39% YoY growth in tractor volumes in February.

Near-Term Outlook:

• Inventory levels are likely to remain lean at OEMs despite the expected wholesales push in 4QFY26.
• Strong wholesales momentum is expected to continue in the near term.

Top Picks:

• Maruti Suzuki is the brokerage's top pick among auto OEMs, driven by new launches and export momentum.
• TVS Motor is the top pick in two-wheelers, driven by consistent outperformance.
• Mahindra & Mahindra is also bullish on, given the uptrend in tractors and healthy growth in UVs.
• In the auto ancillary space, the top picks are Endurance Technologies, SAMIL, and MSWIL.