Archive · 21 Jul 2026
Auto Makers Expect Strong June-Quarter Volumes, Weaker Margins
Auto companies are expected to sell a lot of cars in the June quarter, but they might not make as much money because the cost of materials is going up.
This is making it harder for them to be profitable.
However, experts think that by the September quarter, things might get better.
They also believe that companies like Mahindra & Mahindra, Maruti Suzuki, and Eicher Motors are doing well.
Even though there are some ups and downs right now, they think that electric cars will become more popular in the long run.
Auto makers expect strong June-quarter volumes but weaker margins due to commodity inflation.
Commodity inflation pressures profitability in the June quarter.
Price increases and easing input costs are expected to support recovery from the September quarter.
BNP Paribas prefers Mahindra & Mahindra, Maruti Suzuki, and Eicher Motors.
Long-term outlook remains positive for electric vehicle adoption despite near-term volatility.
- Who
- Auto makers and analysts
- What
- Expect strong June-quarter volumes but weaker margins due to commodity inflation
- When
- June quarter
- Where
- Global auto sector
- Why
- Commodity inflation pressures profitability, but price increases and easing input costs are expected to support recovery
Optimistic Outlook
Pessimistic Outlook
Commodity Inflation
Optimistic Outlook
Commodity inflation is a temporary issue that will ease by the September quarter.
Pessimistic Outlook
Commodity inflation is a significant challenge that will continue to pressure profitability.
Price Increases
Optimistic Outlook
Price increases will help offset the impact of commodity inflation and support recovery.
Pessimistic Outlook
Price increases may not be sufficient to fully mitigate the impact of rising input costs.
- Analyst
- Kumar Rakesh, BNP Paribas
- Sector
- Auto
- Quarter
- June
- Commodity Inflation Impact
- Pressures profitability
- Recovery Timeline
- September quarter onwards
- Preferred Stocks
- Mahindra & Mahindra, Maruti Suzuki, Eicher Motors
- Long-term Outlook
- Positive for electric vehicle adoption