Auto Stocks Gain Ahead of September Sales Data

Auto companies may sell many more vehicles in September than they did last year.

One reason is that last September, some buyers waited for new GST rates to begin.

Demand is also being helped by festival shopping, new vehicle models and better affordability.

Retail sales have grown strongly, and dealerships are carrying relatively few unsold vehicles.

Lower interest rates and growing electric-vehicle adoption may also support purchases.

Higher prices for materials remain a concern for automakers and parts suppliers.

However, companies have raised vehicle prices to reduce the effect of those higher costs.

MOFSL expects company profits to improve gradually from the second quarter of FY27.

It prefers Maruti Suzuki, TVS, M&M and Bajaj Auto among automakers.