Morgan Stanley notes strong demand for alternate powertrains in India

Morgan Stanley says Indian automakers are seeing strong demand for alternate powertrains, supporting positive volume outlooks. Maruti Suzuki reported a 40% rise in CNG bookings and a 100% increase in BEV bookings; Tata Motors is seeing BEV bookings 2.5x higher; Hero MotoCorp is expanding two‑wheeler EV capacity from 20,000 to 30,000 units. Dealers cited stabilizing supply‑chain issues (manpower, gas) but commodity cost pressures of 4–6% remain, prompting measured price increases while companies balance growth and margins. Export momentum is strong for Maruti and Hero, though challenges persist in oil‑dependent economies and the Middle East. Overall, the note is constructive for Indian auto demand and EV adoption but flags near‑term margin risk from input costs.