Goldman Sachs has refreshed its list of top stock picks in Asia to include two automotive stocks: India’s Mahindra and Mahindra and Japan’s Honda Motor . The stocks are featured on the investment bank’s “Conviction List – Directors’ Cut,” which seeks to offer a “curated and active” list of buy-rated stocks. It comes as auto stocks have been in the spotlight in the region following stronger SUV sales in countries like India and high electric vehicle adoption in China . Mahindra and Mahindra Goldman is betting on Mahindra and Mahindra given its “unique pipeline” in India’s SUV car market. “M & M’s evolution from a rural SUV brand in the previous decade to a lifestyle SUV brand in the current decade offers comfort on its upward trajectory in ASP (average selling price) and profit per unit dynamics,” the investment bank wrote in a Nov. 3 note. Analyst Chandramouli Muthiah expects the company’s “strong new SUV order backlog and upcoming Battery Electric Vehicle launches to support industry leading growth visibility vs (its) peers.” Mahindra plans to launch five new internal combustion engine SUVs and seven electric SUVs by 2030. Shares in Mahindra are listed on India’s National Stock Exchange and Bombay Stock Exchange and as an American Depositary Receipt (ADR) in the U.S. under the MAHMF ticker. Its shares are up nearly 70% year-to-date. Goldman has a 12-month target price of 3,600 Indian rupees ($42.80) on the stock, implying 25% potential upside. Honda In Japan, Goldman is bullish on Honda which it describes as “one of the few automakers that can maintain/expand its strong profit margins while making upfront investments in electrification and intelligent mobility.” In analyst Kota Yuzawa’s view, the stock stands to gain from “growth in its motorcycle business, expanding earnings from next-generation hybrids, and appropriately controlling the timing of its investments.” “While some investors are concerned about a temporary decline in earnings as the company transitions to a higher EV sales weighting, we think hybrid earnings are likely to minimize this impact. At the same time, strong growth and profitability in its motorcycle division will help underpin earnings,” he added. Shares in Honda trade on the Tokyo Stock Exchange and as an ADR in the U.S. under the HMC ticker. Its shares have been on a broad decline over the past 6 months, but remain up nearly 4% year-to-date. Goldman has a target price of 2,200 Japanese yen ($14.50) on the stock, implying 44.3% potential upside. The investment bank’s stock picks are selected by a subcommittee in each region which “collaborate with each sector analyst to identify top ideas that offer a combination of conviction, a differentiated view and high risk-adjusted returns,” Goldman says. — CNBC’s Michael Bloom contributed to this report.