Auto sector shifts gears in Q3; TVS Motors, Maruti Suzuki top buys, says Siddhartha Khemka
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India’s automobile sector has staged a strong recovery in the third quarter, supported by a timely GST rate cut around the festive season, healthy retail traction and disciplined inventory management. Demand revival has been broad-based across two-wheelers, passenger vehicles and commercial vehicles, with volumes expanding sharply year-on-year during the quarter. Two-wheeler internal combustion engine volumes rose in the mid-teens, passenger vehicles posted over 20% growth, and commercial vehicles also delivered a robust rebound off a weak base. Importantly, retail demand remained firm even after the festive months, keeping dealer inventories lean and supporting steady wholesale momentum into the fourth quarter, aided by the ongoing wedding season. Within two-wheelers, scooters continue to outpace motorcycles on a year-to-date basis, while mopeds remain subdued. Growth is increasingly skewed toward premium and mid-capacity motorcycles, wi...