Nomura names M&M, Hyundai, Ather Energy as top picks after June auto sales; At the inflection point is called EV penetration

After June’s strong auto sales data, Nomura said India’s EV penetration is at an inflection point, naming Mahindra & Mahindra (M&M), Hyundai India, Ather Energy and Sona BLW Precision Forgings as its top auto picks.

In its latest note, the international brokerage said the healthy demand momentum in the auto segment continued in June. Wholesale volumes of medium to heavy commercial vehicles (MHCV) were significantly higher than estimates, led by easing geopolitical concerns and news of a possible 2.5% price hike from July.

What is driving EV adoption?

Nomura said tractor volume in June was also ahead of estimates, although concerns remained due to El Nino concerns. The international brokerage highlights that consumer interest in electric vehicles remains strong, with EV penetration increasing to 7.5% for PV and 10.6% for two-wheelers in June 2026.

“New launches and improvements in charging infrastructure continue to support EV adoption…We prioritize companies that benefit from this trend. ICE-dominant OEMs that do not have strong EV capabilities face de-rating risk,” Nomura said. As geopolitical concerns ease, commodity prices have moderated across all major metals, the cost outlook for OEMs has improved, he added, “In our view, input cost pressure has eased to around 2.3% for PVs and around 3.4% for two-wheelers (we will continue to have strong pressure from January 2026 to July 2026); Be present across OEMs in Q1 FY27.”

According to the latest data released by the Federation of Automobile Dealers Associations (FADA), India’s passenger vehicle sales stood at around 4.11 lakh units in June, registering a 28.63% year-on-year jump. The autodealers body reported that the total automobile industry recorded a growth of 21.83% in June at 25,57,234 units, with tractors registering 25.31%, two-wheelers 21.22%, commercial vehicles 16.88% and three-wheelers 16.21%.

Also Read: India’s retail car sales jump nearly 29% in June

Nomura’s Top Auto Picks

Nomura has maintained its ‘buy’ rating on shares of M&M, Hyundai, Ather Energy, Uno Minda and Sona BLW Precision Forging and ‘neutral’ rating on shares of Maruti Suzuki, Eicher Motors and Hero MotoCorp.

Per share for international brokerage Mahindra & Mahindra at Rs. has a target price of 4,580, which suggests an upside potential of more than 46% from the stock’s previous close. For Hyundai Motors India, Nomura’s target price is Rs. 2,407, indicating an increase of about 21%.

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(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)