Street View: Analysts warn of high base effect moderating auto sales growth in coming months

Bajaj Auto

02/09/2026 05:25

** India's Nifty auto index .NIFTYAUTO down about 2.3%, with all constituents in the red
** Analysts note sales growth to moderate in coming months as comparisons become tougher against year-ago sales that were boosted by tax cuts

STRONG DEMAND, HIGH BASE
** Expect industry growth to moderate in high base H2, although companies with exposure to EVs, new model launches, should continue to outperform--Nomura 
** Tractor volume growth moderated in Aug, tractor volumes key monitorable over next 2-3 months amid below normal rainfall prediction -- CLSA
** CV demand remains affected by instability linked to Middle East conflict, but should improve in coming months helped by increased government public capex -- HSBC
** 2Ws export growth was strong in August but was weak for PVs on logistical challenges -- BNP Paribas
** Given healthy August wholesales, negative stock reaction "somewhat perplexing--particularly for CV names"-- BofA Global Resarch
     

 (Reporting by Saikeerthi in Bengaluru)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))