“What Does Nuvama Expect from August Auto Sales Performance?”

How Should Investors Read Nuvama’s August Auto Sales Expectations?

Wholesale Outlook (Aug)

Nuvama expects mixed wholesale performance in August. Tractors, 2-wheelers (2Ws) and commercial vehicles (CVs) are likely to continue their year-on-year upward momentum, while passenger vehicles (PVs) may see a marginal decline.

Drivers Behind Segment Trends

Tractors & 2Ws: Growth supported by positive rural sentiment.
CVs: Supported by a favourable base and improved execution of infrastructure projects.
PVs: Marginal decrease expected as some buyers postpone purchases ahead of likely GST cuts.

Company-Level Leaders

In 2Ws, EIM-RE and TVS are expected to outpace peers. Among tractors and PVs, Mahindra & Mahindra (MM) is forecast to outperform peers.

Medium-Term View (FY25–27E)

Nuvama expects tractors, SUVs and 2Ws to register high single-digit CAGR over FY25–27E, outpacing CVs.

Top Picks

Nuvama’s preferred picks: Mahindra & Mahindra, TVS Motors, and Motherson Wiring.

Analyst Inputs — Quick Take

• The mix of rural demand and infrastructure execution supports cyclical strength in tractors, 2Ws and CVs.
• PV weakness looks tactical and linked to GST timing; monitor policy announcements for a clearer trigger.
• Stock selection should favour companies with strong product cycles (MM, TVS) and component suppliers exposed to scale (Motherson Wiring).

Source: Nuvama (Src-Nuvama)

Tags: Auto sales, Nuvama, Tractors, 2W, CV, PV, Mahindra & Mahindra, TVS Motors, Motherson Wiring, GST, Infrastructure

SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services