On Friday, September 12, 2025, Citi reiterated its positive stance on Indian passenger vehicle OEMs, highlighting that they continue to be preferred over commercial vehicles and two-wheelers, with Maruti remaining its top pick. The brokerage said that while earlier optimism was based on self-help measures such as Maruti’s new models and exports, M&M’s strong UV portfolio and robust tractor demand, and Hyundai’s capacity expansion and new launches, the outlook is now bolstered by macro drivers.
Citi noted that proposed GST rate cuts, coupled with the delayed impact of income tax revisions and lower interest rates, could create a supportive environment where industry growth surpasses prevailing estimates. It also pointed out that the base is weaker for passenger vehicles compared to two-wheelers, adding to potential growth momentum for PV makers.
Citi raised its target prices across leading auto OEMs. For Maruti, it hiked the target to ₹17,500 against a current market price (CMP) of ₹15,119, implying an upside of around 15.7%. For M&M, the target price was increased to ₹4,170 versus a CMP of ₹3,597, reflecting a potential upside of about 15.9%. For Hyundai, Citi lifted the target to ₹2,900 from a CMP of ₹2,498.10, indicating a possible gain of nearly 16.1%.
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Maruti: TP ₹17,500 vs CMP ₹15,119 → ~15.7% upside
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M&M: TP ₹4,170 vs CMP ₹3,597 → ~15.9% upside
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Hyundai: TP ₹2,900 vs CMP ₹2,498.10 → ~16.1% upside
According to the brokerage, these factors position Indian passenger vehicle companies well for better-than-expected growth in the coming quarters.
Disclaimer: The views and investment recommendations expressed in this article are those of Citi. Business Upturn does not endorse or recommend any investment decisions. Investors are advised to consult financial experts before making investment choices.
