Indian automakers face margin risks after upbeat March sales

Hyundai Motor India

02/04/2026 07:46

** Analysts say India's automakers logged strong March sales across segments, supported by pre-buying ahead of expected price hikes, steady underlying demand

** However, warn rising commodity costs, possible fuel-price hikes, uncertainty linked to Iran war could pressure margins into FY27

** Nomura estimates March passenger vehicle wholesale sales to have risen ~15% y/y, two-wheelers ~18%

** Morgan Stanley expects electric two-wheeler penetration to have climbed to ~9.8%; UBS sees PV EV sales up 67%, electric two-wheelers up 47%

** Mahindra & Mahindra MAHM.NS, TVS Motor TVSM.NS, Maruti Suzuki MRTI.NS among brokerages' preferred picks on strong demand, market-share gains

** Tata Motors TATM.NS, Maruti Suzuki gain PV market share in March; Hyundai Motor India HYUN.NS, Toyota lose share, Morgan Stanley says

** CLSA estimates automakers may need ~6% cumulative price hikes to offset input costs; Citi flags commodity inflation, gas-supply disruptions, chip availability

** Auto stocks .NIFTYAUTO fall 2.62%; Nifty 50 .NSEI down 1.97%

** YTD, NIFTYAUTO down 16.24%, NSEI down ~15%

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))