New Delhi, Oct. 25 -- Eicher Motors, Hyundai and Tata Motors' passenger vehicle business are Nuvama Institutional Equities' top picks in the auto sector ahead of Diwali 2026, as the brokerage favours automakers with new product launches and healthy waiting periods. However, it expects vehicle volume growth to moderate in the second half of FY27 as festive demand shows signs of slowing after a strong first half.

Initial festive-season registrations since Navratri have been mixed. Commercial vehicle (CV) registrations grew 21% year-on-year (YoY), while two-wheeler (2W) registrations rose 13%. Passenger vehicle (PV) registrations, however, declined 9% YoY. Festive-season performance has also lagged the over 20% growth recorded across catego...