Auto Stocks Rally Up to 140% in 2025: A Robust 2026 Ahead?
TL;DR
Indian auto stocks surged up to 140% in 2025 due to GST rate cuts, fueling demand across all segments. Analysts predict continued growth into 2026, supported by strong fundamentals and premium trends.
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Indian auto stocks have rallied up to 140% in 2025, driven by a reduction in GST rates to 18% from 28-31%. The move has sparked a broad-based demand revival across the auto ecosystem, boosting sales and improving the medium-term outlook for passenger vehicles, two-wheelers, tractors, commercial vehicles, and auto components. International brokerages such as BofA Securities and HSBC expect the momentum to continue into 2026, with fundamentals firmly in place for commercial vehicles and tractors, and premiumisation driving growth in the two-wheeler segment.
