The three stocks have been on a tear, with their share prices surging in the recent past. This surge in share prices has been attributed to several factors, including strong earnings, positive investor sentiment, and a favorable market environment. The surge in share prices has been particularly notable for Tata Motors, Bajaj Auto, and Eicher Motors, which have seen their share prices rise by 64 percent, 40 percent, and 130 percent respectively. This outperformance has been further amplified by the Nifty Auto index, which has gained 68 percent in the past year.

This cautiousness stems from several factors. First, the high valuations of auto stocks are a concern. These valuations are driven by strong demand and supply chain issues, which have led to price increases. However, analysts believe that these factors are likely to normalize in the two years ahead. Second, the high interest rates are impacting the auto sector.

Ford: Analysts expect Ford to see a strong performance in the auto industry, driven by its electric vehicle (EV) strategy. Ford is expected to launch several new EVs in the 2024 model year, including the Mustang Mach-E and the F-150 Lightning. General Motors: Analysts expect General Motors to continue its strong performance in the 2024 model year, driven by its strong brand recognition and its focus on electric vehicles. GM is expected to launch several new EVs in the 2024 model year, including the Silverado EV and the Hummer EV.