Latest news with #EPA27
Time of India
7 days ago
- Automotive
- Time of India
Nuvama sees India as auto safe haven, bets on Eicher, TVS, M&M, Maruti amid global slowdown
Nuvama Institutional Equities is betting on Indian two-wheeler, passenger vehicle and tractor majors including Eicher Motors , TVS Motors , Maruti Suzuki and Mahindra & Mahindra to outperform, citing resilient domestic demand and product momentum, even as the global auto industry faces broad-based volume declines in 2025. The brokerage has turned selectively bullish on Indian auto stocks, issuing 'buy' ratings for four two-wheeler manufacturers, Eicher Motors with a target price of Rs 6,200, TVS Motors at Rs 3,200, Bajaj Auto at Rs 10,700, and Hero MotoCorp at Rs 5,100, and naming them as key beneficiaries of 'domestic strength, new launches and premiumisation tailwinds.' Nuvama said the two-wheeler export cycle has likely bottomed out and expects Bajaj and TVS to 'lead the pack on volume growth.' Nuvama also maintained a positive view on passenger vehicle major Maruti Suzuki, with a target price of Rs 13,400, and on tractor and utility vehicle maker Mahindra & Mahindra at Rs 3,700. Escorts Kubota was rated 'buy' at Rs 3,600. On the other hand, Tata Motors and Ashok Leyland were rated 'reduce' with target prices of Rs 670 and Rs 240, respectively, citing weak segments and freight-related structural shifts. Auto component stocks also feature among the brokerage's top picks. Motherson Wiring India was rated 'buy' with a target of Rs 83, Uno Minda at Rs 1,300 and Sona Comstar at Rs 560. In the tyre segment, Nuvama favours CEAT with a target of Rs 3,800 and Apollo Tyres at Rs 550. 'Domestic 2Ws and PVs continue to see tailwinds from demand and product refresh. Export-oriented names should gradually recover as overseas demand stabilises,' Nuvama said. India a bright spot Amid global pressures, the brokerage sees India's auto landscape as relatively insulated. While global auto players face demand weakness, regulatory overhangs and soft freight markets, the Indian market is benefiting from steady farm incomes, infrastructure activity and improving consumer sentiment. Nuvama expects India's domestic tractor industry to grow in the mid-to-high single digits in FY26, supported by 'good Rabi harvest cash flows, higher crop prices, above-normal monsoon expectation, and sufficient water levels in reservoirs.' Escorts expects export growth of 20–25% in the same period, while M&M is upbeat about demand in South India and Maharashtra. Ashok Leyland sees growth across light, intermediate and heavy commercial vehicles in FY26. Tata Motors forecasts 'single-digit growth,' supported by cargo HCVs and buses, although it flagged risks to high-tonnage trailer volumes from the shift to the Western Dedicated Freight Corridor. Global outlook weak In contrast to India's resilience, Nuvama expects the global auto sector to remain subdued in 2025. 'North America HCV volumes are likely to decline up to 16% and Europe HCV by up to 15%,' the brokerage said, citing economic uncertainty, weak freight demand and lack of prebuying amid unclear EPA27 regulations. Construction equipment demand is expected to fall by up to 15% in North America and 10% in Europe, while tractor volumes are also projected to remain weak after sharp Q1 declines in both regions. Global PV production is expected to drop in the U.S. and EU, while China may see marginal gains. Bosch forecasts a 4–7% increase in PV production and 7–10% in two-wheelers in India for FY26. Exporters such as Bharat Forge, Ramkrishna Forgings, Balkrishna Industries and SAMIL are exposed to these global headwinds, but Nuvama said it believes they 'should outpace industry' due to robust order books and diversification. With a global slowdown weighing on volumes across regions, Nuvama is tilting toward India-centric names that offer visibility on domestic demand and margin tailwinds.
Time of India
29-05-2025
- Automotive
- Time of India
Nuvama sees India as auto safe haven, bets on Eicher, TVS, M&M, Maruti amid global slowdown
Nuvama Institutional Equities is betting on Indian two-wheeler, passenger vehicle and tractor majors including Eicher Motors , TVS Motors , Maruti Suzuki and Mahindra & Mahindra to outperform, citing resilient domestic demand and product momentum, even as the global auto industry faces broad-based volume declines in 2025. The brokerage has turned selectively bullish on Indian auto stocks, issuing 'buy' ratings for four two-wheeler manufacturers, Eicher Motors with a target price of Rs 6,200, TVS Motors at Rs 3,200, Bajaj Auto at Rs 10,700, and Hero MotoCorp at Rs 5,100, and naming them as key beneficiaries of 'domestic strength, new launches and premiumisation tailwinds.' Nuvama said the two-wheeler export cycle has likely bottomed out and expects Bajaj and TVS to 'lead the pack on volume growth.' Nuvama also maintained a positive view on passenger vehicle major Maruti Suzuki, with a target price of Rs 13,400, and on tractor and utility vehicle maker Mahindra & Mahindra at Rs 3,700. Escorts Kubota was rated 'buy' at Rs 3,600. On the other hand, Tata Motors and Ashok Leyland were rated 'reduce' with target prices of Rs 670 and Rs 240, respectively, citing weak segments and freight-related structural shifts. Auto component stocks also feature among the brokerage's top picks. Motherson Wiring India was rated 'buy' with a target of Rs 83, Uno Minda at Rs 1,300 and Sona Comstar at Rs 560. In the tyre segment, Nuvama favours CEAT with a target of Rs 3,800 and Apollo Tyres at Rs 550. 'Domestic 2Ws and PVs continue to see tailwinds from demand and product refresh. Export-oriented names should gradually recover as overseas demand stabilises,' Nuvama said. India a bright spot Amid global pressures, the brokerage sees India's auto landscape as relatively insulated. While global auto players face demand weakness, regulatory overhangs and soft freight markets, the Indian market is benefiting from steady farm incomes, infrastructure activity and improving consumer sentiment. Nuvama expects India's domestic tractor industry to grow in the mid-to-high single digits in FY26, supported by 'good Rabi harvest cash flows, higher crop prices, above-normal monsoon expectation, and sufficient water levels in reservoirs.' Escorts expects export growth of 20–25% in the same period, while M&M is upbeat about demand in South India and Maharashtra. Ashok Leyland sees growth across light, intermediate and heavy commercial vehicles in FY26. Tata Motors forecasts 'single-digit growth,' supported by cargo HCVs and buses, although it flagged risks to high-tonnage trailer volumes from the shift to the Western Dedicated Freight Corridor. Global outlook weak In contrast to India's resilience, Nuvama expects the global auto sector to remain subdued in 2025. 'North America HCV volumes are likely to decline up to 16% and Europe HCV by up to 15%,' the brokerage said, citing economic uncertainty, weak freight demand and lack of prebuying amid unclear EPA27 regulations. Construction equipment demand is expected to fall by up to 15% in North America and 10% in Europe, while tractor volumes are also projected to remain weak after sharp Q1 declines in both regions. Global PV production is expected to drop in the U.S. and EU, while China may see marginal gains. Bosch forecasts a 4–7% increase in PV production and 7–10% in two-wheelers in India for FY26. Exporters such as Bharat Forge, Ramkrishna Forgings, Balkrishna Industries and SAMIL are exposed to these global headwinds, but Nuvama said it believes they 'should outpace industry' due to robust order books and diversification. With a global slowdown weighing on volumes across regions, Nuvama is tilting toward India-centric names that offer visibility on domestic demand and margin tailwinds. Also read | Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
Yahoo
13-03-2025
- Automotive
- Yahoo
Traton SE (TRATF) (FY 2024) Earnings Call Highlights: Record Deliveries and Strategic ...
Release Date: March 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Traton SE (TRATF) achieved an adjusted return on sales of 9.2%, exceeding their target of 9%. The company delivered 334,000 vehicles in a declining market, indicating a gain in market share. Traton SE (TRATF) plans to increase dividend payouts due to a significant rise in earnings per share. Scania achieved record high sales and earnings, delivering over 100,000 vehicles for the first time. Traton Financial Services expanded its geographic reach, significantly increasing its market penetration. Traton SE (TRATF) faces persistent market challenges in Europe and North America, impacting future margin expectations. The company anticipates increased expenses related to the new facility in China, affecting Scania's margins. MAN's margins are expected to decrease due to increased pressure from fixed costs and a challenging European market. The North American market remains weak, with significant customer hesitation impacting order intake. Traton SE (TRATF) is cautious about declaring a market turnaround in Europe despite recent positive order intake trends. Warning! GuruFocus has detected 4 Warning Sign with TRATF. Q: Can you provide more details on the margin guidance for 2025, particularly regarding pricing assumptions and the impact of China and EV investments? A: (Michael, CHRO) The margin guidance reflects the current market situation and differences in order books compared to 2024. MAN had a strong margin in the first half of 2024 due to well-filled order books with good pricing. The China investment involves ramp-up costs, which will slightly affect Scania's margin. Overall, the guidance considers market challenges and investments in future technologies. Q: What is the production outlook for Scania and Navistar, given the expected decrease in MAN production? A: (Christian, CEO) MAN will step out of short-term work and ramp up production from April due to increased demand in Central Europe. Scania in Europe has found a good equilibrium, while in Latin America, production continues at full capacity. For Navistar, the order intake has been slow, but production rates remain unchanged for now. Q: Have you started conversations with customers about pricing for the new EPA trucks, and are you expanding capacity in the US plants due to tariff concerns? A: (Christian, CEO) Discussions with customers about EPA 27 are ongoing, but the situation remains uncertain. The production situation in North America is more stable now, with increased supply chain stability. We have not moved production from Mexico to the US, but we are flexible in our North American production system. Q: Can you elaborate on the impact of the China investment on profitability in 2025? A: (Michael, CHRO) The China investment is strategic, with a total investment of around 2 billion. We expect ramp-up costs in 2025 due to the start of production. The investment is crucial for long-term growth, providing a footprint in Asia and allowing us to compete effectively in the Chinese market. Q: What are the next steps in harmonizing the Traton Group and implementing Scania's ways of working? A: (Christian, CEO) The focus is on developing the Traton modular system, starting with a combined driveline and extending to chassis, electronics, and cabs. This process will take several years, with the newly established group R&D function playing a key role. Harmonization of processes and IT systems across brands is also underway to improve efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
