According to a latest sector note by brokerage firm PL Capital, April 2026 dispatched steady volume growth across various vehicle segments. This performance defied the usual sluggishness seen after the financial year-end, remaining strong even as automakers hiked prices and slashed their discounts.  

“PVs grew by ~20%, driven by steady urbanization and shift toward SUVs. Inventory remained healthy at ~28 days in Mar’26, flattish MoM, lower than 32-34days in Jan’26 and ~52 days in Mar’25,” PL Capital said in its note dated May 4.

Meanwhile, the two-wheeler segment witnessed elevated growth figures, partly because of a lower base from Hero MotoCorp in the previous year. 

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However, PL Capital said that the West Asia conflict and El Niño pose risks to sentiments. Meanwhile, Mahindra & Mahindra Ltd (M&M) is the only ‘Buy’ call in the coverage universe. PL Capital has tagged a 'Buy' rating on M&M, setting a target price of Rs 3,850. 

“Total T&B division sales (CV > 3.5T, incl. SML) grew +11.2% YoY to 3.0k units driven by the SML passenger segment,” it said.

On the other hand, Maruti Suzuki India Ltd has an 'Accumulate' rating with a target price of Rs 14,550. “Export penetration stood at 16.7% of the overall portfolio (+120bps YoY, -420bps MoM). Overall production volumes for Apr’26 indicate MoM moderation, dragged by UVs,” PL Capital said.

PL Capital maintained an 'Accumulate' rating for Bajaj Auto with a target price of Rs 10,000, noting that “sales grew +40.5% YoY to 513.8k units. 2W volumes rose +38.4% YoY to 440.0k units: domestic volumes grew +11.4% (210.1k units) and exports grew +77.8% YoY (230.0k units).”

TVS Motor Company Ltd also has an 'Accumulate' tag with a target price of Rs 4,150. 
“Countermeasures have been taken to mitigate the supply chain constraints (incl. workforce availability, RM and consumable shortages and container availability for exports). Retail volumes remain robust in both domestic and international markets,” it said.

Both Eicher Motors Ltd and Hero MotoCorp Ltd remain on the brokerage's 'Accumulate' radar, with target prices of Rs 7,700 and Rs 6,000, respectively. For Royal Enfield's parent company, Eicher Motors, “double-digit growth continues, with 350cc+ segment recording growth for the 2nd consecutive month post GST 2.0 roll-out. International business continues to decline,” PL capital noted.