Motilal Oswal backs Maruti, TVS, M&M for festive season auto demand surge

According to the report, two-wheeler sales are being driven by scooter demand, with TVS Motor gaining market share while Honda Motorcycles and Scooter India underperformed in the segment. In the four-wheeler segment, car volumes rose by 20.4% in August 2026, led by Maruti Suzuki, Hyundai Motor India, and Honda.

Maruti Suzuki emerged as a top outperformer with a 29.4% increase in sales, boosting its market share by approximately 665 basis points to 72.9%. Hyundai Motor India saw a 29.8% gain but experienced a marginal decline in year-to-date market share to 12.2%, while Honda posted an 84% surge, maintaining its market share at around 3%.

Motilal Oswal also included Bajaj Auto in its bullish OEM stock category. The brokerage projected a maximum upside of 41% for Maruti Suzuki stock. On Tuesday, Maruti Suzuki’s stock closed 0.41% higher at ₹4,100 per share on the BSE, with a market capitalisation of ₹1,94,785.72 crore. The stock has delivered a 19% return over one year and 39% over three years.

In contrast, another reference in the material noted Maruti Suzuki’s stock closing at ₹11,899 per share, down 1.17% on the day, with negative returns of 25% over one year and nearly 15% over three years — suggesting a possible data inconsistency or misattribution in the source. TVS Motor’s stock closed 1.45% lower at ₹2,951.00, while Bajaj Auto ended 1.73% lower at ₹10,819 per share on the BSE.

The report underscores the seasonal uplift in automobile demand as a key driver for near-term performance in the OEM space, with inventory build-up ahead of festivities expected to support volume growth across both two-wheeler and four-wheeler segments.