Auto Stocks to BUY: Citi turn bullish on Maruti Suzuki, Hyundai Motor; check fresh targets

Auto stocks saw sharp selling pressure in Monday’s trade. The Nifty Auto index slipped 1.05 per cent to 27,529.15, underperforming the broader market. Heavyweights like Hyundai Motor India and Maruti Suzuki India traded lower, tracking concerns over near-term demand and margins.

Despite the decline, global brokerage Citi sees the correction as a buying opportunity in select names. Citi remains bullish on Maruti Suzuki and Hyundai Motor India, even as it tweaks estimates to reflect recent trends in volumes and margins.

Citi on Hyundai Motor India

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Hyundai Motor India shares traded around Rs 2,296, down nearly 2 per cent. Citi maintained its ‘Buy’ rating on the stock but cut the target price to Rs 2,700 from Rs 2,850.

The brokerage said it has trimmed its estimates to factor in recent weakness in volume growth. Volume estimates for FY26–FY28 are cut by 1 to 2 per cent. Citi also lowered margin assumptions due to softer average selling prices. As a result, EBIT estimates for FY26–FY28 are cut by 5 to 6 per cent, with earnings estimates also reduced by a similar margin.

Citi on Maruti Suzuki

Maruti Suzuki shares traded near Rs 16,421, down around 0.6 per cent. Citi reiterated its ‘Buy’ call and raised the target price to Rs 19,000 from Rs 18,900.

The brokerage said it made minor changes to estimates to reflect strong volume momentum. Volume estimates for FY26–FY28 are raised by 2 to 3 per cent. While margin assumptions were trimmed slightly due to lower gross margins, EBIT estimates for the same period are increased by up to 1 per cent. Earnings estimates are also raised by up to 1 per cent.

Maruti Suzuki, Hyundai Motor India: November sales data 2025

Hyundai India reported domestic sales of 50,340 units in November 2025, up 4.3 per cent year-on-year. Growth was led by strong demand for models like the Creta, which sold 17,344 units, and the new Venue.

Total global sales, including exports, stood at 66,840 units. The company saw a post-festive rebound in demand, though month-on-month sales dipped slightly from October’s peak.

Maruti Suzuki reported a record November 2025, with total sales of 2,29,021 units, marking a 26 per cent year-on-year jump. Passenger vehicle sales rose 21 per cent, while exports surged 60.9 per cent.

Key models such as Dzire, Swift, Ertiga, and Fronx saw strong traction. Domestic passenger vehicle sales stood at 1,70,971 units, while overall retail growth touched 31 per cent.