What are Nomura's top auto stock picks in India?

Nomura's top auto stock picks include Mahindra & Mahindra, Ashok Leyland, Tata Motors Commercial Vehicles, TVS Motor Company, Ather Energy, and Hyundai Motor India.

What challenges does Nomura foresee for India's auto market?

Nomura foresees rising commodity costs and the potential impact of new Labour Codes as challenges for India's auto market.

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India's Auto Boom: Nomura's Top Stock Picks Revealed

Q: Which auto ancillary stocks does Nomura recommend?

Nomura's recommended auto ancillary stocks are Sona BLW Precision Forgings, Samvardhana Motherson International, Sansera Engineering, UNO Minda, and CEAT.

8 Jan

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Summary

Nomura identifies top auto stocks for India's booming market.
Strong domestic volume growth fuels optimism across segments.
Rising commodity costs pose a potential challenge for margins.

India's Auto Boom: Nomura's Top Stock Picks Revealed

India's automotive sector is poised for significant growth, with international brokerage Nomura highlighting key investment opportunities. The firm has named Mahindra & Mahindra as its top Original Equipment Manufacturer (OEM) pick, alongside positive ratings for Ashok Leyland, Tata Motors Commercial Vehicles, TVS Motor Company, Ather Energy, and Hyundai Motor India. This optimism stems from a substantial surge in domestic volumes, with passenger vehicle sales up 22% year-on-year in Q3 FY26 and strong growth projected for commercial vehicles.

In the auto ancillary space, Nomura's top picks include Sona BLW Precision Forgings, Samvardhana Motherson International, Sansera Engineering, UNO Minda, and CEAT. These companies are expected to benefit from increased production across the industry, with OEMs projected to achieve 25% cumulative revenue growth and 27% EBITDA growth in Q3 FY26, excluding Jaguar Land Rover.