Nomura has maintained a constructive view on the Indian automobile sector after June 2026 wholesale sales exceeded expectations across multiple vehicle segments. The brokerage said demand momentum remained healthy, supported by robust growth in commercial vehicles, tractors, passenger vehicles, and electric vehicles.

According to Nomura, medium and heavy commercial vehicle wholesale volumes increased 24 percent year on year in June, significantly above its estimate of 12 percent. Tractor wholesale volumes also outperformed expectations, rising 14 percent compared with the brokerage's forecast of 7 percent, indicating sustained strength in rural demand.

The brokerage highlighted Mahindra and Mahindra, Hyundai Motor India, and Ather Energy as its preferred investment ideas within the sector. It expects these companies to benefit from strong product portfolios, improving demand trends, and rising adoption of electric vehicles in India. Nomura also noted that electric vehicle penetration continues to increase, with the domestic market approaching an important growth inflection point.

The positive wholesale performance was broadly supported by recent retail sales trends, reinforcing expectations of sustained demand across the automobile industry. Healthy rural activity, stable consumer sentiment, and continued EV adoption are expected to support the sector's growth outlook in the coming quarters.