Why this analyst prefers passenger vehicles over bikes

Kumar Rakesh, India Analyst for Auto & IT at BNP Paribas, believes the passenger vehicle (PV) segment offers greater stability compared to the two-wheeler industry, which is undergoing disruption due to the rapid growth of electric vehicle (EVs) and new players entering the market.

“The market share shift in the two-wheeler electric vehicle (EV) space, some more entrants would be entering in the EV space, and that will continue to create impact on the ICE volume as well as margin of the overall business. We see the passenger vehicle industry relatively more stable where the bulk of the competition is within the existing incumbents, and we don’t have any disruption happening from outside.”

Among PV manufacturers, he sees strong long-term growth potential in companies like Maruti Suzuki and Mahindra & Mahindra

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Mahindra is already posting solid volume growth, including in its farm equipment business, and is expected to continue to deliver its double digit volume growth.

Maruti Suzuki could gain from the eventual rise in hybrid vehicle adoption in India. While hybrid vehicles have outpaced EVs in most global markets—excluding countries like China and the UK, where policy support has favoured EVs—India is still in the early stages of that transition. As policy support for hybrids begins to emerge domestically, Maruti is well-positioned to capitalise on that trend.

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In the two-wheeler EV space, Hormazd Sorabjee, Editor at Autocar India, drew a clear distinction between players like Ola Electric and Ather Energy.

He raised concerns about Ola’s operations, citing regulatory lapses and a lack of transparency in operations. From a technology perspective, he believes Ola has yet to demonstrate significant innovation, highlighting that their flagship product, the S1 Pro, is essentially an adapted European model and not the result of original R&D.

In contrast, Sorabjee was more positive on Ather Energy, citing its engineering capabilities and consistent execution.

Not all promoters in the EV space are the same—some, like those behind Ather, have built trust through consistent execution, unlike others who have stumbled, he noted.

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