Indian auto stocks to get boost from likely govt wage hikes, Goldman Sachs says

UNO Minda

25/03/2025 07:41

** Indian automakers and related stocks poised to gain from India's potential pay hikes, says Goldman Sachs

** GS expects 5 mln govt employees to get 14%-19% more per month after 8th Pay Commission hike, which, along with monthly tax savings post FY26 budget, will fuel demand in auto sector

** Notes 7th Pay Commission (2016-2018) drove strong autos growth

** Sees Eicher Motors EICH.NS, TVS Motor TVSM.NS, Maruti Suzuki MRTI.NS and Uno Minda UNOI.NS as likely beneficiaries

** EICH, TVSM and MRTI shares are up 13.3%, 3% and 9.7%, respectively in 2025 so far, UNOI is down 10.2%

** Nifty auto index .NIFTYAUTO down 4.5% in 2025

 (Reporting by Bharath Rajeswaran in Bengaluru)

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