Auto Sector Enters Premium Growth Cycle Says MOFSL

31 Jul 2026 CW Team

Near-term risks are centred on rainfall distribution, rural income trends, crude oil prices and geopolitical developments, which could influence commodity costs and consumer sentiment. Entry-level demand remains relatively sensitive to inflationary pressures, while intermittent supply disruptions in specific components could affect production schedules. Improving inventory discipline, healthier dealer networks and a robust pipeline of new product launches are expected to mitigate these risks and support medium-term prospects.

Maruti Suzuki is a top pick with a target price of Rs17,059 and is positioned to regain market share as capacity ramps up at its Kharkhoda and Gujarat plants. A healthy launch pipeline, a revival in small-car demand and lean dealer inventory underpin the outlook. The company plans to launch seven new SUVs by 2031 and to expand exports to 750–800 thousand units by FY31. Market share recovery gained momentum in 1QFY27 as capacity constraints eased, while exports rose 28 per cent year on year.

TVS Motor is another recommended stock with a target price of Rs4,470 and is said to be sustaining outperformance through consistent market share gains in domestic and export markets, a strong premium product pipeline, electric vehicle momentum and capacity expansion. It delivered record sales of one point six three million (mn) units in 1QFY27, with revenue up 37.8 per cent year on year and an EBITDA margin of 12.8 per cent. Analysts expect double-digit domestic industry growth and resilient export demand, supporting elevated medium-term earnings growth.

Motilal Oswal Financial Services said the auto sector has entered a premium growth cycle driven by premiumisation, electrification and rising technology content. Consumer demand is shifting towards feature-rich utility vehicles, premium motorcycles, connected mobility solutions and electric vehicles, prompting manufacturers to broaden product portfolios and invest in advanced manufacturing capabilities. Capacity additions across vehicle assembly, battery manufacturing and component plants are accelerating, supported by government initiatives that promote domestic manufacturing and localisation. Near-term risks are centred on rainfall distribution, rural income trends, crude oil prices and geopolitical developments, which could influence commodity costs and consumer sentiment. Entry-level demand remains relatively sensitive to inflationary pressures, while intermittent supply disruptions in specific components could affect production schedules. Improving inventory discipline, healthier dealer networks and a robust pipeline of new product launches are expected to mitigate these risks and support medium-term prospects. Maruti Suzuki is a top pick with a target price of Rs17,059 and is positioned to regain market share as capacity ramps up at its Kharkhoda and Gujarat plants. A healthy launch pipeline, a revival in small-car demand and lean dealer inventory underpin the outlook. The company plans to launch seven new SUVs by 2031 and to expand exports to 750–800 thousand units by FY31. Market share recovery gained momentum in 1QFY27 as capacity constraints eased, while exports rose 28 per cent year on year. TVS Motor is another recommended stock with a target price of Rs4,470 and is said to be sustaining outperformance through consistent market share gains in domestic and export markets, a strong premium product pipeline, electric vehicle momentum and capacity expansion. It delivered record sales of one point six three million (mn) units in 1QFY27, with revenue up 37.8 per cent year on year and an EBITDA margin of 12.8 per cent. Analysts expect double-digit domestic industry growth and resilient export demand, supporting elevated medium-term earnings growth.

Infrastructure Urban

31 Jul 2026

SCLR Extension Nears Completion Linking BKC With Signal-Free Route

The Santacruz-Chembur Link Road (SCLR) extension towards Bandra-Kurla Complex (BKC) via the Mumbai University campus has entered its final stage, bringing motorists closer to a direct, signal-free connection between the Western Express Highway and the city’s commercial district. The elevated connector is being built as an arm from the SCLR alignment and will link the western suburbs with BKC without surface signals. The link is designed to reduce journey times for commuters travelling from the western suburbs to BKC and to improve access to eastern Mumbai. By carrying through traffic above s..

Infrastructure Transport

31 Jul 2026

Raiganj MP Seeks Bengal Only Highway Link To Siliguri

Raiganj Member of Parliament Kartik Chandra Paul met Union Minister for Road Transport and Highways Nitin Gadkari in New Delhi to press for a new stretch of national highway in North Dinajpur district. He urged approval for a Bengal-to-Bengal link that would connect National Highways 12 and 27 to allow vehicles bound for Siliguri to avoid the current route through Kishanganj in neighbouring Bihar. He also submitted a proposed alignment of the new road to the ministry for consideration. At present vehicles from Raiganj travel along NH-12 and join NH-27 at Purnia More in Dalkhola, a route that p..

Infrastructure Transport

31 Jul 2026

Airport Kilambakkam Metro Line To Be Extended To Chengalpattu

Chennai Metro Rail (CMRL) has invited tenders for two detailed project reports that would extend its rail network to Chengalpattu in the south and extend Corridor-5 to Wimco Nagar in the north as part of a second wave of expansion beyond the operator's corridors under construction. The move signals an acceleration of planning for suburban links and interchange nodes. The larger of the two studies covers a roughly 27km extension from the planned Kilambakkam metro station to Chengalpattu under Corridor-1, Phase I. CMRL floated the tender at an estimated cost of Rs 21.6 mn. The proposed line woul..