Brokerages see steady demand, resilient earnings for India's auto, auto component makers

Sona Blw Precision Forgings

25/02/2026 07:33

** India's auto stocks .NIFTYAUTO rise as much as 2.23%, with 14 of the 15 constituents logging gains, as part of a broad-based market rebound from Tuesday's sell-off

** Retail demand in the auto sector continues to be strong, driven by post-GST cut momentum, while healthy rural volumes in January have been supported by Pongal/Makar Sankranti, marriage season, and better affordability, says Motilal Oswal

** Adds near-term outlook for the sector remains positive, and identifies TVS Motor TVSM.NS, Maruti Suzuki MRTI.NS and Mahindra & Mahindra MAHM.NS as its top picks among original equipment makers

** Jefferies sees buying opportunity in auto component makers with global exposure such as Bharat Forge BFRG.NS, Samvardhana Motherson SAMD.NS and Sona BLW SONB.NS

** Expects a likely upward earnings inflection for auto component makers after a tough 2025 due to weak global demand and tariff uncertainties

** Sees Ashok Leyland ASOK.NS and Eicher Motors EICH.NS outperforming among original equipment makers

** Auto index has risen 0.8% in 2026 so far, outperforming the 2.5% drop in the Nifty 50 index .NSEI, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))