Bank of America Securities (BoFA Sec) has highlighted weakness in the two-wheeler (2W) segment, with growth turning negative from double digits in the first half of FY25 due to tighter financing and reduced subsidies. Year-to-date retail growth for FY25 stands at 8%, with scooters outperforming bikes.
Despite the 2W slowdown, BoFA prefers Eicher Motors as a growth pick and Bajaj Auto as a value play, particularly due to export recovery. The four-wheeler (4W) segment is faring better, with tractors showing strength and passenger vehicles (PVs) expected to recover after a slow FY25. The brokerage also notes that concerns over Tesla’s impact on the Indian auto market are overdone.
BoFA remains positive on Mahindra & Mahindra (M&M) and Maruti Suzuki in the 4W space, seeing strong fundamentals and recovery potential.
Disclaimer: The views and investment recommendations in this article are sourced from brokerage reports. Business Upturn does not provide investment advice. Readers should consult financial experts before making any investment decisions.
