Indian auto stocks set to end 2025 at record closing high after tax cuts propel demand

Ashok Leyland

31/12/2025 09:26

** Indian auto stocks .NIFTYAUTO set to end 2025 at record closing high, extending gains after tax cuts boosted demand

** Fifteen-member Nifty Auto index up 23.3% in 2025, with gains led by index heavyweights Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Eicher Motors EICH.NS and TVS Motor TVSM.NS

** Index last up 1% at 28,171.95

** Twelve index constituents log YTD gains; Tata Motors Passenger Vehicles TAMO.NS among three laggards

** Auto stocks fell in the first half of 2025 on U.S. tariffs and domestic demand concerns, before recovering to record high levels as tax cuts that took effect late September boosted demand

** Bus and truck maker Ashok Leyland ASOK.NS gains most, up ~63% YTD; parts supplier Tube Investments TBEI.NS falls most, down 27%

** Analysts rate seven auto index stocks "buy",  six "hold", and two "sell" - data compiled by LSEG

** Nifty Auto among best performing indexes this year, outperforms blue-chip Nifty 50 .NSEI index's ~11% rise

 (Reporting by Nandan Mandayam in Bengaluru)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))