CLSA flags Tata, M&M, Bajaj and Ather as festive auto-demand picks

India’s auto registrations strengthened in early August, with two-wheelers up 16% year on year and passenger vehicles up 4%. CLSA highlighted share gains for Tata Motors Passenger Vehicles, TVS Motor and Royal Enfield, while EV penetration reached 10% in two-wheelers and 8% in passenger vehicles.

— Source published Tue, 18 Aug, 2026, 07:33 IST · First seen Tue, 18 Aug, 2026, 09:09 IST · Source NDTV Profit

What happened

CLSA says India’s auto retail registrations are healthy ahead of the festive season, favouring M&M, Tata Motors Passenger Vehicles, Bajaj Auto and Ather.

Key facts

  • Two-wheeler registrations rose 16% YoY in the first 15 days of August
  • TVS Motor gained 111 bps two-wheeler market share
  • Royal Enfield gained 44 bps; Hero MotoCorp lost 57 bps and Bajaj Auto lost 28 bps
  • Electric two-wheeler penetration was 10%; TVS had 29% share, Bajaj 22%, Ather 17%
  • Passenger-vehicle registrations rose 4% YoY in the first half of August
  • Tata Motors Passenger Vehicles gained 89 bps share; Maruti Suzuki gained 48 bps; Hyundai lost 118 bps
  • Tata held 36% of PV EV market and M&M held 23%; PV EV penetration was 8%
  • Commercial-vehicle registrations rose 5% YoY; tractor registrations rose 14%
  • CLSA forecasts 8% FY27 growth in M&HCV goods volumes
  • Tractor wholesale volumes grew about 20% year-to-date in FY27

Why this matters

Rising EV adoption—10% in two-wheelers and 8% in passenger vehicles—heightens the strategic value of partnerships, distribution assets and technology targets that can accelerate scale in fast-growing segments.

What to watch

  • August-October retail registrations versus wholesale dispatches and dealer inventory days.
  • Festive booking trends, cancellation rates and waiting periods for Tata, M&M, Bajaj, TVS, Royal Enfield and Ather models.
  • Two-wheeler EV penetration sustaining above 10% and passenger-vehicle EV penetration sustaining above 8%.
  • Financing approval rates, loan-to-value ratios and interest-rate promotions from banks and NBFCs.
  • Discount levels in passenger vehicles and motorcycles, especially if market-share defense intensifies.
  • Rural income indicators, monsoon outcomes and post-harvest cash flows.
  • Charging-network uptime, battery supply availability and state EV-policy changes.
  • Increase dealer inventory selectively in high-turn festive models, particularly SUVs, commuter motorcycles, premium motorcycles and fast-moving EV variants.
  • Expand financing partnerships, low-down-payment offers and exchange programs to convert festive footfall without relying solely on OEM-funded discounts.
  • Prioritize charger availability, service capacity and battery-finance products in EV-heavy urban catchments as penetration rises.
  • Track dealer-level stock days by model and region; constrain wholesale dispatches where retail conversion trails production.
  • Use accessories, insurance, extended warranties and servicing bundles to capture higher attachment revenue from stronger festive deliveries.