ICICI Securities names Bajaj Auto, Eicher Motors and Hyundai as preferred picks after August sales
August auto wholesales broadly met or beat estimates, with double-digit year-on-year growth in two-wheelers and passenger vehicles supported by GST-cut-led demand, ICICI Securities said. The brokerage sees festive-season momentum but flags vehicle price hikes as a demand risk.
What happened
Bajaj Auto · ICICI Securities said August auto wholesales broadly met or exceeded estimates, supported by GST-cut-led demand. It named Hyundai Motors, Eicher
Key facts
- August 2026
- Double-digit year-on-year growth in two-wheelers and passenger vehicles
Why this matters
Sustained demand across two-wheelers and passenger vehicles strengthens the strategic appeal of scale OEMs and distribution assets, although price-led demand elasticity should be monitored in partnership or acquisition cases.
What to watch
- September-November vehicle registrations by segment and state, especially two-wheelers and compact SUVs.
- Festival booking trends, cancellation rates, delivery waiting periods and dealer inventory commentary.
- Further OEM price hikes, changes in GST pass-through and on-road-price movement.
- Rural demand indicators, monsoon outcomes, fuel prices and consumer-finance approval rates.
- Monthly market-share changes for Bajaj Auto, Royal Enfield/Eicher Motors and Hyundai versus key competitors.
- Discount levels and dealer incentives after the festive season.
- Favor OEMs with premium positioning, strong model pipelines and lower dependence on price-sensitive entry segments.
- Track retail registrations and dealer inventory days rather than wholesales alone to distinguish genuine demand from channel stocking.
- Watch whether OEMs absorb input costs or implement further price increases; repeated hikes would raise conversion risk.
- Assess supplier, dealership and auto-finance read-throughs: sustained volume growth should improve component orders, dealer throughput and loan disbursals.