Jtekt, Endurance, Fiem rise upto 13%; what's driving auto ancillary stocks?

Since the start of CY2025, policymakers have announced a slew of measures, including income tax cuts, repo rate cuts along with CRR cuts, and GST reforms to revive consumer demand

Auto ancillary shares price today

 

Shares of auto components rallied up to 13 per cent on the BSE in Thursday's intraday trade, amid heavy volumes, as investors bet on demand improvement due to goods and services tax (GST) rationalisation amid reforms.

 

Shares of Jtekt India, Endurance Technologies, Sundram Fasteners, Fiem Industries, Rico Auto Industries, Lumax Industries, Talbros Automotive Components, and Banco Products (India) advanced more than 2 per cent each.

 

Among individual stocks, Jtekt India soared 13 per cent to ₹147.90 on the BSE in the intraday trade on the back of heavy volumes. At 11:44 AM, the stock was trading 6 per cent higher at ₹138.90 as compared to 0.31 per cent decline in the BSE Sensex.

 

Around 16.33 million equity shares, representing 5.9 per cent of total equity of the company, have, cumulatively, changed hands on the NSE (15.03 million shares) and BSE (1.3 million shares) till the time of writing this report.  CATCH STOCK MARKET LIVE UPDATES TODAY

GST reform: An incremental sector support

 

A potential cut in the GST rate to 18 per cent, with cess removal, could lower on-road vehicle prices by 5-8 per cent across segments, analysts believe, driving demand recovery.

 

Original equipment manufacturers (OEMs) stand to gain through higher volumes and earnings upgrades (4-20 per cent depending on the scenario). Further, while domestic ancillary companies could likely see 5-11 per cent EPS upgrades through operating leverage, global suppliers may see only marginal gains, given export-heavy exposure and tariff-related uncertainty, according to analysts at Kotak Institutional Equities.

 

Since the start of CY2025, policymakers have announced a slew of measures, including income tax cuts, repo rate cuts along with CRR cuts, and GST cuts in the coming months, which are expected to stimulate demand in the coming months, the brokerage firm said in a sector report.  ALSO READ | Jaiprakash Power Ventures hits 5% upper circuit in weak market; here's why

Sector outlook

 

Looking ahead, the Indian auto industry is expected to continue its growth in FY25-26, supported by stable economic conditions, increased spending on infrastructure, and supportive government policies.

 

A normal monsoon, as predicted, will likely support rural demand, especially for two-wheelers and smaller cars. The recent changes in personal income tax, along with two interest rate cuts by the RBI, are expected to make vehicle loans cheaper and increase customer spending.

 

Exports are also likely to stay strong, especially in markets like Africa and neighboring countries, where Indian-made vehicles are becoming more popular.

 

Meanwhile, India remains one of the largest automobile markets globally, supported by a robust ecosystem of OEMs, suppliers, and consumers. The two-wheeler segment leads in volume, buoyed by growing middle class, youthful demographics, and expanding rural markets. The commercial vehicle segment is experiencing renewed demand, aided by growth in logistics, infrastructure development, and fleet modernization.

 

"Increasing investments by OEMs in electric vehicle (EV) platforms, battery technologies, and charging infrastructure signalled long-term confidence in the sector. With a growing ecosystem of component suppliers and localized battery manufacturing initiatives under the Advanced Chemistry Cell (ACC) PLI scheme, India is poised to emerge as an EV hub in the coming years," Fiem Industries said in its FY25 annual report.  ALSO READ | Avanti, Apex Frozen & other shrimp stocks fall up to 12% on tariff woes 

India's auto component industry plays a crucial role in supporting the broader automobile sector. With strong domestic demand, export opportunities, government support, and rapid innovation, the sector is well positioned to navigate global headwinds and seize emerging opportunities, it said.

 

As electrification, sustainability, and digital transformation reshape the industry landscape, companies that proactively invest in capabilities, partnerships, and customer-centric strategies will be best placed to thrive in the evolving mobility ecosystem.