Nomura Expects Strong June Auto Sales, Reiterates Buy on M&M, Hyundai Motor India and Ather Energy

Brokerage Nomura expects June auto sales to stay healthy across passenger vehicles and two wheelers, reiterating its Buy rating on Mahindra and Mahindra, Hyundai Motor India and Ather Energy in its latest monthly sector preview. The note comes ahead of the formal release of June auto sales data over the coming days, with channel checks pointing to resilient demand despite recent fuel price hikes.

Within its auto coverage, Nomura continues to prefer companies with strong product cycles and rising export mix, a theme that has kept M&M, Hyundai Motor India, TVS Motor, Ather Energy and Sona BLW Precision Forgings among its top rated names heading into the June auto sales print.

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Nomura's June Auto Sales Outlook by Segment

Nomura expects passenger vehicle demand to hold up well despite recent fuel and vehicle price hikes, with two wheeler volumes also seen staying firm on the back of steady rural sentiment. The brokerage flagged that rising policy support for electric vehicles, along with elevated conventional fuel costs, could further accelerate the pace of EV adoption through the June auto sales cycle and beyond. Passenger vehicle EV penetration has been trending higher through the year, alongside steady gains in two wheeler EV penetration.

On commercial vehicles, Nomura has stayed more cautious, citing rising fuel costs and price hikes as headwinds that could weigh on demand even as the medium and heavy commercial vehicle upcycle continues in pockets of the market.

The table below summarises Nomura's key Buy calls ahead of the June auto sales data.

Company	Nomura Rating	Target Price
Mahindra and Mahindra	Buy	Rs 4,580
Hyundai Motor India	Buy	Rs 2,407
TVS Motor Company	Buy	Rs 4,105
Ather Energy	Buy	Rs 1,120
Sona BLW Precision Forgings	Buy	Rs 720

Why Nomura Likes M&M, Hyundai India and Ather Ahead of June Auto Sales

Mahindra and Mahindra remains Nomura's top pick in the four wheeler space, with the brokerage citing the company's strong utility vehicle order book, lean channel inventory and continued outperformance versus the broader industry in recent months. The stock was trading around Rs 3,105 on Tuesday, leaving meaningful headroom to Nomura's target if the June auto sales print confirms continued volume momentum.

Hyundai Motor India remains a preferred pick on the back of a strong upcoming model cycle, a rising SUV mix and an expanding export business, which Nomura expects to support a healthy earnings per share compound annual growth rate over FY26 to FY28. The stock was trading around Rs 1,896, broadly steady on the day. Use the Univest Screener to compare these auto names on valuation and volume growth metrics ahead of the June auto sales data.

Ather Energy remains Nomura's preferred pick in the electric two wheeler space, supported by rapid store expansion, improving gross margins and the upcoming ramp up of its EL platform. The stock has rallied sharply over the past month to around Rs 1,110, narrowing the gap to Nomura's target, which reflects the strength of the recent re-rating even as the brokerage stays constructive into the June auto sales season.

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What Should Investors Watch in the June Auto Sales Data

Investors tracking the June auto sales numbers should watch passenger vehicle wholesale and retail growth closely, since any gap between the two can signal dealer inventory build up or destocking. Two wheeler EV penetration trends and commentary on festive season demand expectations are also likely to be key data points once companies report their monthly dispatch figures.

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Conclusion

Nomura's constructive stance on June auto sales, backed by continued Buy ratings on Mahindra and Mahindra, Hyundai Motor India and Ather Energy, reflects broad based confidence in demand resilience across passenger vehicles and electric two wheelers. With target prices implying a wide range of upside across the three names, the formal June auto sales data over the coming days will be the next key trigger for these stocks. These targets are analyst estimates and not guaranteed returns, so investors should consult a SEBI registered advisor before making any investment decision.

Frequently Asked Questions

What does Nomura expect from June auto sales?

Ans. Nomura expects June auto sales to remain healthy across passenger vehicles and two wheelers, supported by steady demand despite recent fuel price hikes and continued policy support for electric vehicles.

Which stocks has Nomura rated Buy ahead of June auto sales?

Ans. Nomura has reiterated Buy ratings on Mahindra and Mahindra, Hyundai Motor India, TVS Motor, Ather Energy and Sona BLW Precision Forgings as part of its June auto sales preview.

What is Nomura's target price for Mahindra and Mahindra?

Ans. Nomura has a Buy rating on Mahindra and Mahindra with a target price of around Rs 4,580, citing a strong utility vehicle order book and continued industry outperformance.

What is Nomura's target price for Hyundai Motor India?

Ans. Nomura has a Buy rating on Hyundai Motor India with a target price of around Rs 2,407, supported by a strong model cycle, rising SUV mix and an expanding export business.

What is Nomura's target price for Ather Energy?

Ans. Nomura has a Buy rating on Ather Energy with a target price of around Rs 1,120. The stock has rallied sharply in recent weeks, narrowing the gap to this target.

Is commercial vehicle demand also expected to be strong in June?

Ans. Nomura has stayed more cautious on commercial vehicles for June auto sales, citing rising fuel costs and price hikes as near term headwinds even as the broader upcycle continues in parts of the segment.

Should investors buy these stocks based on Nomura's June auto sales preview?

Ans. Nomura's targets reflect the brokerage's own estimates and are not guaranteed returns. This article does not constitute investment advice, and investors should consult a SEBI registered advisor before making decisions.