Falling crude price is a clear positive for India's automobile and tyre sectors, where raw material and logistics costs are highly sensitive to crude derivatives, say analysts at ICICI Securities.
However, in the past one month, the Nifty Auto index underperformed the market and fell 3.6 per cent, as against 2.7 per cent decline in the Nifty 50 as of June 11, 2026.
According to FADA, February 2026 emerged as best-ever February for 2W, 3W, CV, PV, tractors and overall retail. Data showed that retail vehicle sales jumped by 25.6 per cent Y-o-Y to 24,09,362 units
Auto stocks in focus: ICICI Securities see limited impact of likely lower EU import tariffs on Indian Auto OEM space which is steadily progressing to clock ~45 lakh units' sales volume in FY26E.
The Nifty Auto index has zoomed as much as 157.8 per cent in the last four calendar years as against a 50.6 per cent surge in the benchmark Nifty 50, shows data.
Hero MotoCorp reported a dispatch growth of 40 per cent in December, with volumes at 456,479 units, compared with 324,906 units in the same month last year
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.
Auto stocks in demand following reports of long queues and brisk bookings at auto dealerships on the first day of the GST 2.0 rollout, with leading brands reporting marked spikes in consumer activity.
Tax cuts drive auto stocks higher as Maruti, Eicher, and TVS surge; analysts expect festival season demand to lift sales and profits across India's automobile sector
Nearly 80 per cent of stocks from Nifty Auto, IT and FMCG indices are seen trading above the short-term moving average, indicating strength in the sector, says Axis Securities in a report.
