Motilal Oswal: Auto sector remains steady in November; Maruti, M&M, and Hyundai among top picks

Motilal Oswal Financial Services (MOSL) has shared insights into the performance of the auto sector, noting that November 2024 was expected to be a relatively weak month due to the high base from last year. However, the sector demonstrated resilience, driven by strong performances in key segments and brands.

Key Highlights:

  1. Passenger Vehicle (PV) Growth: The PV industry reported a 4% YoY growth in dispatches in November, reflecting steady consumer demand despite the high base effect.
  2. Year-to-Date (YTD) Performance:
    • The two-wheeler ICE (Internal Combustion Engine) segment posted a robust 10.8% YoY growth, showcasing strong traction in the segment.
    • The PV industry, however, recorded a modest 1% YoY growth on a YTD basis.
  3. Segment Leaders:
    • Honda Motor emerged as a key outperformer in both the scooter ICE and motorcycle segments, reflecting its dominance in the two-wheeler category.
    • In the PV sector, Mahindra & Mahindra (M&M) and Toyota led the market, gaining 210 bps and 185 bps market share, respectively.
  4. Top Picks:
    • Maruti Suzuki, M&M, and Hyundai were identified as the top stock picks in the auto sector by Motilal Oswal, highlighting their strong market positions and growth potential.

The report underscores the sector’s resilience and strong performance in key segments despite challenges. With steady growth in the two-wheeler ICE segment and market share gains in PVs, the auto sector is well-positioned for further growth.

Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.

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