Auto Sector Poised for Strong Growth Despite Export Headwinds: Nuvama Report

• Nuvama Institutional Equities maintains a constructive view on the auto sector, projecting healthy sales growth for FY26-28E.
• Wholesale uptrend expected to continue in March 2026, driven by better affordability, new products, and finance availability.
• Two-wheeler industry to see double-digit domestic volume growth, over 15% YoY, with TVS Motor and Bajaj Auto leading.
• Passenger vehicle segment volumes likely to rise in double digits in March 2026, supported by improved affordability and new launches.
• Commercial vehicle and tractor industries also anticipate double-digit growth due to GST cuts, improved freight, and subsidies.