Auto shares in fast lane; TVS, Maruti Suzuki, Ashok Leyland gain up to 2%

Auto companies share price today

 

Shares of automobiles companies were in focus, trading higher by up to 2 per cent on the National Stock Exchange (NSE) in Wednesday’s intra-day trade on the back of strong demand outlook.

 

TVS Motor Company, Maruti Suzuki India, Ashok Leyland, Tata Motors Passenger Vehicles, Bharat Forge, Bajaj Auto, Bosch and Samvardhana Motherson International (SAMIL) were up in the range of 1 per cent to 2 per cent.

 

At 01:18 PM; Nifty Auto index was up 1.2 per cent, as compared to 1 per cent rise in the Nifty 50. The auto index hit an intra-day high of 27,708.50, and was trading close to its all-time high of 27,725.25 touched on September 23, 2025.

 

Thus far in the month of November, the Nifty Auto index has outperformed the market by gaining 3.3 per cent, as against 1.5 per cent rise in the Nifty 50. Further, in the past four months, auto index has surged 17 per cent, as compared to 6 per cent up move in the benchmark index.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why are automobile stocks outperforming the market?

 

Auto stocks have been outperforming the market on expectations of a healthy volume growth in FY26 led up upbeat demand sentiment in the rural economy amid healthy farm produce and a good monsoon season.

 

After a sharp rally in the Nifty Auto Index, post the GST rate cut, in August-September 2025 (9 per cent), the index took a breather in recent months to underperform. The last one month, however, witnessed sharp returns for select stocks like Ashok Leyland, Bharat Forge, SAMIL and Apollo Tyres. Analysts at InCred Equities feel, the macroeconomic stimulus measures like income-tax rate reduction, interest rate cut, and Pay Commission salary revision will drive a two-to-three year demand cycle recovery.

 

Meanwhile, in the July to September 2025 quarter (Q2FY26), festive cheers along with GST reforms resulted in a positive momentum for the auto industry. OEM auto industry saw a healthy performance, with domestic volumes growing 6 per cent year-on-year (YoY) on the back of GST 2.0, while exports surged 26 per cent on robust global demand across passenger vehicle (PV), commercial vehicle (CV) & 2W segments.

 

Tyre manufacturers posted healthy results, with players benefitting from softer input costs (lower by 3-5 per cent QoQ) and stronger replacement demand hence seeing a gross margin expansion of ~130-180 bps QoQ. Rural demand stayed resilient aided by above-normal monsoons. Going forward, the sectoral commentary remains optimistic, with GST reforms to unlock long term growth, ICICI Securities said in the sectoral earnings.

 

Looking ahead, Choice Institutional Equities remain constructive on the sector performance over the next few quarters. Key drivers include the ongoing benefits of GST 2.0, steady rural income trends and seasonal catalysts, such as weddings and agricultural cash flows. Festive spillover demand through November–December, improved stock availability, fresh model introductions, year-end retail schemes and new-year registrations are expected to sustain volume growth across categories. The brokerage firm expects that calibrated price hikes and an improving product mix will support margin trajectory.