Why Auto Stocks Are Rising Today: Maruti, M&M, TVS Motor, Ashok Leyland Lead Nifty Auto Rally
Nifty Auto surged over 2% as falling crude oil prices, easing US-Iran tensions and strong industry outlook boosted buying in Maruti Suzuki, M&M, TVS Motor, Hero MotoCorp, Ashok Leyland and other auto stocks.
Auto stocks rallied sharply after crude oil prices fell, easing concerns over input costs and inflation. Nifty Auto jumped over 2%, while Maruti Suzuki, M&M, TVS Motor, Hero MotoCorp and other auto stocks gained on improving sector outlook and lower fuel prices.
Auto stocks saw buying on 25 June, as Nifty Auto index jumped more than 2%. The rally was driven by a sharp fall in crude oil prices, easing geopolitical tensions, and optimism over the sector's long-term growth outlook.
Shares of Maruti Suzuki, Mahindra & Mahindra (M&M), TVS Motor, Hero MotoCorp, Ashok Leyland, Eicher Motors, Tata Motors, Uno Minda and Samvardhana Motherson were among the biggest gainers during the session.
Here's why auto stocks are in focus today.
Why are Auto Stocks Rising Today?
The biggest trigger is the sharp decline in crude oil prices.
Brent crude has slipped to around $72.5-$73 per barrel on 25 June 2026, almost back to levels seen before the US-Iran conflict. From its May 2026 peak of around $115 per barrel, crude has corrected nearly 37%, reducing concerns over rising input costs and inflation.
Lower crude prices are positive for automobile companies because it help reduce manufacturing, logistics and transportation costs. Also, improve consumer sentiment by easing fuel price concerns.
Another major positive is lower oil prices reduce the possibility of interest rate hikes, which supports vehicle demand by keeping borrowing costs under control.
How Did Auto Stocks Perform?
Auto and auto ancillary stocks in India rallied across the board.
|
Company |
Share Price Movement |
|---|---|
|
Uno Minda |
▲ 4% |
|
Maruti Suzuki |
▲ 3.71% |
|
Mahindra & Mahindra |
▲ 3.13% |
|
Samvardhana Motherson |
▲ 3.66% |
|
Hero MotoCorp |
▲ 3% |
|
Bosch |
▲ 2.37% |
|
Ashok Leyland |
▲ 2% |
|
TVS Motor |
▲ 2% |
|
Eicher Motors |
▲ 2% |
|
Tata Motors Passenger Vehicles |
▲ 3% |
|
Tata Motors Commercial Vehicles |
▲ 3% |
|
Apollo Tyres |
▲ 3% |
|
Bajaj Auto |
▲ 3% |
|
Bharat Forge |
▲ 3% |
As of 25 June 2026, 11 PM
How Nifty Auto Performed Recently?
The sector has continued to outperform the broader market.
-
Up for the third consecutive week
-
Up for the third straight month
-
Gained around 4.5% in the last two weeks compared with a 4.2% rise in Nifty 50.
However, despite the recent recovery, Nifty Auto index remains down 4.4% in calendar year 2026, while Nifty 50 has declined 7.6% during the same period.
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Why is Falling Crude Oil Good For Auto Companies?
Automobile companies use several petroleum-based products during manufacturing, while transportation and logistics also depend heavily on fuel.
Lower crude prices reduce cost pressures across the value chain and help improve operating margins. For commercial vehicle operators, diesel is even more important.
According to analysts, diesel accounts for nearly 30-50% of the total cost of operation (TCO) for fleet operators. Stable fuel prices improve fleet economics and encourage fresh vehicle purchases.
The recent decline in crude prices also followed the resumption of tanker movement through the Strait of Hormuz after an initial peace agreement between the US and Iran, easing supply concerns.
Final Words
Auto stocks in India are benefiting from a combination of lower crude oil prices, easing geopolitical tensions and improving long-term industry fundamentals.
While brokerages remain optimistic about the sector's structural growth story, investors will continue tracking crude oil prices, interest rates and monthly vehicle sales data for further direction.