Nomura flags October auto surge, backs M&M, Ather and TVS
- Nomura says October auto growth was led by EVs, SUVs and scooters (F1,F7).
- M&M, Ather Energy and TVS Motor named as outperformers (F2,F8).
- Passenger‑vehicle wholesales up 7% YoY to 502,000 units (F18).
- Two‑wheeler EV sales jumped 44% YoY to 216,600 units (F24).
- Nomura maintains ‘Buy’ ratings on M&M, Hyundai India, Ather, TVS and Sona (F3).
Nomura reported on November 2, 2026, that the Indian automotive sector experienced growth in October, primarily driven by the performance of electric vehicles, sport utility vehicles, and scooters. The research firm identified Mahindra & Mahindra, Ather Energy, and TVS Motor as the outperformers within the auto industry.
During the Navratri festive period, Mahindra & Mahindra, Ather Energy, and TVS Motor were specifically highlighted by Nomura as the companies that outperformed their peers. Nomura noted that growth in October was driven by SUVs, electric vehicles, and scooters.
Segment‑wise volume growth and registration trends for October
Nomura estimated year-on-year volume growth for October at 7% for passenger vehicles, 12% for two-wheelers, and 25% for medium and heavy commercial vehicles, while tractor volumes declined by 7%. Dealer surveys indicated strong festive demand, though registration data from October 11 to October 29 showed a 9% year-on-year increase for two-wheelers and an 8% decline for passenger vehicles.
In the two-wheeler segment, growth was led by electric vehicles and internal combustion engine scooters. Motorcycle sales remained tepid, with growth in the 150cc category but a decline in the 125cc category. Passenger vehicle demand was driven by electric vehicles and large SUVs over four metres in length, while hatchback sales remained soft.
Nomura estimated October passenger vehicle wholesales at 502,000 units, a 7% year-on-year increase, and retail sales at 457,000 units, a 22% decline, leading to a dealer inventory increase of 36,000 units. Medium and heavy commercial vehicle wholesales reached 41,500 units, a 25% increase, while retail sales were 43,700 units, a 24% increase.
Electric vehicle sales in the two-wheeler segment reached 216,600 units in October, a 44% year-on-year increase that accounted for approximately 9.5% of the industry. Estimated sales by player included 60,000 units for TVS, 46,300 units for Bajaj Auto, 30,600 units for Ather, and 29,200 units for Hero MotoCorp.
Buy ratings and earnings outlook for key auto players
Nomura projects passenger vehicle industry growth of 13% in FY27 and 6% in FY28.
For medium and heavy commercial vehicles, Nomura increased its FY27 industry growth estimate to 13% from 8%. The firm maintains its FY28 growth estimate for this segment at 5%.
Rural demand risks and tractor volume outlook
Nomura remains cautious regarding rural demand due to inflation, rising interest rates, and oil prices. These factors pose risks to its 5% growth estimate for tractor volumes in FY27.
Company snapshots: Ather Energy, M&M and TVS Motor
Ather Energy is a Bengaluru-based electric two-wheeler manufacturer founded in 2013 by Tarun Mehta and Swapnil Jain. The company produces the 450 series and Rizta scooters with facilities in Whitefield and Hosur.
Nomura Holdings, Inc. is a public financial services company headquartered in Tokyo, Japan. It held its initial public offering on 2 October 1961.
Performance winners and laggards during Navratri
In the passenger vehicle segment, M&M was the outperformer during the same festive period. These performance trends were reported on 2 November 2026.
Frequently Asked Questions
- Auto stocks: Nomura sees October growth led by EVs, SUVs and scooters; M&M, Ather and TVS outperform (moneycontrol.com)
- Nomura (tavily.com)
- Ather Energy (Wikipedia — background) (en.wikipedia.org)
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