India’s automobile market is seeing a reshuffle in pecking order across two wheelers and passenger vehicles, with newer launches and changing ‘Buy’er preferences driving gains for some companies and losses for others. A fresh report from Jefferies tracks these movements and keeps a positive stance on select names that are gaining share and riding stronger demand pockets.
The brokerage has retained ‘Buy’ ratings on TVS Motor, Eicher Motors and M&M, citing improving positioning across segments, while flagging pressure on some legacy leaders.
Jefferies on TVS Motor Company: ‘Buy’
Jefferies has maintained a ‘Buy’ rating on TVS Motor Company, pointing to steady gains across domestic and export markets along with its growing presence in electric scooters.
TVS Motor’s domestic two-wheeler share has climbed to 19% in FY26, up from earlier levels and marking a 22-year high, according to data cited by Jefferies. Between FY14 and FY26, the company has nearly doubled its market share in motorcycles and internal combustion engine scooters while also establishing leadership in electric two-wheelers with a 24% share. Export performance has also strengthened, with share rising to 28% in FY26 from 13% in FY15.
Jefferies writes, “TVS continues to gain market share in domestic two-wheelers, climbing to a 22 year high,” adding that its presence across segments has helped it capture demand as the market moves toward premium bikes and electric scooters.
The brokerage ties its positive stance to a structural demand move away from entry-level motorcycles toward higher capacity bikes and electric offerings, both areas where TVS has expanded its portfolio. It also points out that industry electric penetration has moved to 6.5% in FY26 from 0.4% in FY21, giving early movers like TVS an edge.
Jefferies on Eicher Motors: ‘Buy’
Jefferies has reiterated a ‘’Buy’’ rating on Eicher Motors, supported by continued gains in the premium motorcycle segment through its Royal Enfield brand.
Eicher Motors’ share in the overall two-wheeler market has moved to 5% in FY26, up from 4.5% in FY25, while it remains dominant in the 125cc and above premium category with a 31% share, which is higher year on year.
Jefferies notes, “Eicher has been the dominant player in 125cc-plus premium bikes since FY22,” and adds that its share in this segment continues to rise.
The report links this performance to a broader change in demand patterns where ‘Buy’ers are moving toward premium motorcycles rather than entry-level options. This trend has lifted the contribution of higher-capacity bikes within the overall industry mix, giving Eicher Motors a strong runway for growth.
Jefferies also highlights that industry demand has been shifting steadily, with the share of entry-level bikes declining to 27% in FY26 from 37% in FY18, while the share of larger bikes has moved higher over the same period.
Jefferies on M&M: ‘Buy’
Jefferies has maintained a ‘’Buy’’ rating on Mahindra & Mahindra, driven by its rising share in passenger vehicles and continued strength in utility vehicles and tractors. The brokerage’s positive stance is based on consistent gains across multiple segments rather than a single product cycle.
Mahindra and Mahindra’s passenger vehicle market share has risen to 14% in FY26 from 6% in FY21, taking it to the number two position in the market. This rise comes alongside a steady increase in its share within the sport utility vehicle category.
Jefferies states, “Mahindra has been gaining market share in passenger vehicles with favourable demand shift towards SUVs and new launches,” pointing to the company’s ability to capitalise on changing ‘Buy’er preferences.
Sport utility vehicles accounted for 67% of total passenger vehicle volumes in FY26, up from 65% in FY25, showing continued momentum in this category. Mahindra’s product pipeline has aligned well with this demand, helping it expand its presence.
Beyond passenger vehicles, Jefferies highlights gains in tractors where Mahindra’s registration share has moved to 41% in FY26 from 36% in FY20 to FY21. It has also increased its share in light commercial vehicles to 45% in FY26 from 36% in FY22.
Conclusion
Jefferies’ latest report draws a picture of an industry where gains are tied to product positioning and segment exposure. TVS Motor and Eicher Motors are benefiting from a move toward premium motorcycles and electric scooters, while Mahindra and Mahindra is riding demand for sport utility vehicles and rural-linked segments such as tractors.
Disclaimer: Investment in the automotive sector involves significant market risk, particularly as consumer preferences shift toward electric vehicles and premium segments. This report contains specific “‘Buy'” ratings and market share analysis sourced from third-party brokerage research; however, these should be viewed as informational and not as a solicitation to trade. Since auto stocks are subject to cyclical demand and regulatory changes, readers should consult a SEBI-registered investment advisor to assess how these specific equities fit their individual risk profile and financial goals.
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