Citi sees three tailwinds driving India car demand, prefers Maruti

** Citi calls passenger vehicles its top auto pick, betting on "trifecta of tailwinds" - lower income tax, GST and interest rates

** Brokerage expects "long-awaited uptick in PV demand" from policy changes

** Lifts FY26 car sales growth forecast to 2.1% from 1.3%, with higher FY27-FY28 estimates

** Maruti Suzuki MRTI.NS is top pick, followed by Mahindra & Mahindra MAHM.NS and Hyundai India HYUN.NS

** Hikes PTs: MRTI to 17,500 from 14,400 rupees; MAHM to 4,170 from 3,700 rupees; HYUN to 2,900 from 2,400 rupees

** * MRTI to benefit from small car uptick where lower tax impact is highest; MAHM, HYUN gain from reduced SUV rates - Citi

** All firms rated "buy" on average - data compiled by LSEG

** YTD, MRTI, HYUN both up 41%; MAHM gains 19%; Nifty auto .NIFTYAUTO up 18%; benchmark Nifty 50 .NSEI up 6%