October 26, 2025

The Indian automobile sector is riding a wave of hope after the Goods and Services Tax (GST) rate cuts gave a big boost to demand across vehicle types. Foreign investors, especially, have started smiling again as sales volumes rise, fueled by festive cheer, price drops, and happier rural buyers. Where the magic is most visible? Entry-level passenger cars and two-wheelers! Price cuts between 8 to 15 percent have made these vehicles more tempting to buyers. During the vibrant Navratri festival, carmakers saw bookings soar, footprints in showrooms almost doubling compared to last year. However, a word of caution: this growth rides on heavy discounts and easy financing, which might fade after early 2026. Looking ahead, passenger vehicle sales are expected to jump over 8 percent in financial year 2027. SUVs will lead the charge, while two-wheelers—both motorcycles and scooters—are revving up well. Electric variants keep their cool share despite the tax changes. The commercial vehicle segment is at a crossroads, with investors watching for signs of a bounce back. Strong pricing and healthier balance sheets have made companies more solid, but worries remain about future challenges like the Dedicated Freight Corridor's influence on freight needs. Auto component makers are facing a rollercoaster ride with tariff uncertainties messing with margins and stock values. Players tied to commercial vehicles and exports feel the heat, while others focusing on local production enjoy steady gains. The big picture? The auto industry looks set for growth, backed by lower prices, festive buying energy, and export strength. But the big question is whether this boom will last beyond the festival buzz. Recently, the Auto Index has beaten the mighty Nifty, signaling investors are excited but cautious, all ears for signs of a lasting boom rather than a quick flash. Spotlight on Maruti Suzuki: Riding a richer product wave with more SUVs, CNG cars, and exports, Maruti’s CNG share now stands at 35 percent thanks to strong demand after GST cuts. Their profit after tax climbed 2 percent to ₹37.1 billion, boosted by smart cost control and forex gains. Export sales jumped 37 percent year-on-year, proving global buyers can’t get enough. With new SUVs like the e-Vitara coming, Maruti is geared for steady growth both at home and abroad. Endurance Technologies is also on fire, planning to boost its four-wheeler business to 45 percent of revenues from 25 percent. They’re building a new plant in Maharashtra and teaming up with a Korean partner to enter 4W suspension systems. The upcoming 100% ABS mandate for two-wheelers in January 2026 is a game changer, potentially making their market ten times bigger. With strong ABS skills and deep supplier connections, Endurance aims to grab 25 percent market share here. They hold ₹36.1 billion in confirmed orders, expecting around 18-21 percent yearly growth through 2027, shining both in India and Europe. As India’s auto wheels turn faster, expect vibrant fares on roads and stock charts alike. But keep watching if this GST-fueled joyride turns into a lasting journey or a short thrill.

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Tags: Indian automobile sector, Gst rate cut, Maruti suzuki, Endurance technologies, Vehicle sales, Investor sentiment,