Nomura sees India auto demand rising on possible GST cuts

Ashok Leyland

22/08/2025 07:14

** Nomura sees India's auto sector demand rising 5%-10% y/y on plans for sweeping GST cuts

** Auto index .NIFTYAUTO set for 5% weekly gain

** Brokerage expects initial demand rush to be quite high during festive season

* Says price cuts for cars, two-wheelers will boost demand for OEM (original equipment manufactures), auto segments

** Sees upside in auto sector stocks if GST cuts implemented

** Says Mahindra & Mahindra MAHM.NS, Ashok Leyland ASOK.NS, Maruti Suzuki MRTI.NS have higher upside potential; TVS Motors TVSM.NS preferred pick in 2-wheelers

** For the week, MAHM up ~4%, ASOK up ~7%, MRTI up ~11%, TVSM up ~9%

** YTD, NIFTYAUTO gains ~11%, outpacing benchmark Nifty 50's .NSEI 5.4% rise

 (Reporting by Komal Salecha)

 ((Komal@thomsonreuters.com;))