Nomura has provided an industry-wide outlook for the automobile sector, indicating a cautious approach in the passenger vehicle (PV) segment, while two-wheeler (2W) and commercial vehicle (CV) makers remain relatively optimistic about FY26 growth prospects.
For the PV segment, most companies have expressed a very cautious outlook for FY26, reflecting demand uncertainties and potential macroeconomic challenges.
In the 2W segment, the sentiment appears more positive, with TVS Motor expecting a 9-10% year-on-year (YoY) industry growth and Hero MotoCorp (HMCL) forecasting 7-8% YoY growth in FY26E.
For commercial vehicles, Tata Motors (TTMT) expects a 4% YoY growth, while Ashok Leyland (AL) anticipates single-digit growth in trucks and double-digit growth in buses for FY26, highlighting differing demand trends within the segment.
Nomura’s outlook suggests that while PVs could see a slowdown, two-wheelers and commercial vehicles could drive sectoral growth, making it crucial for investors to track demand trends and volume recovery in these segments.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.
