Auto stocks in focus: Shares of Maruti Suzuki, MRF, Ashok Leyland, TVS Motor Company, Mahindra & Mahindra, and Eicher Motors are currently trading close to their record highs after maintaining a sustained upward trend in recent months.
Among these, MRF — the most expensive stock in the Indian stock market — is just 1.02% away from its record high of ₹143,849, which it reached in August 2024. From its March low of ₹102,659 per share, the tyre major has rebounded 39% to trade at around ₹142,400.
The next closest to its all-time high is Mahindra & Mahindra, which is just 5.98% below its February 2025 peak of ₹3,270 per share. Likewise, TVS Motor Company, currently trading at ₹2,766 per share, is only 6.94% away from its record high of ₹2,958.
| Stock Name | Current Market Price | Distance from record high |
|---|---|---|
| MRF | ₹142,400 | 1.02% |
| Mahindra & Mahindra | ₹3,086 | 5.98% |
| TVS Motor Company | ₹2,766 | 6.94% |
| Maruti Suzuki | ₹12,618 | 8.42% |
| Ashok Leyland | ₹244 | 8.18% |
| Eicher Motors | ₹5,400 | 9.38% |
| Source: Trendlyne | ||
After fluctuating for several weeks, Maruti Suzuki shares finally gained momentum in April — a trend that continued into May — bringing the stock to within 8.42% of its record high of ₹13,680 per share.
Ashok Leyland, which had been in the red for four straight months also staged a strong comeback in April with a gain of 10.33%, followed by another 8% increase so far in May. The stock is now just 8.18% away from its all-time high of ₹264.65. Eicher Motors is also approaching its peak, currently trading 9.38% below its record high of ₹5,906 per share.
What triggered the turnaround in auto stocks?
The recovery in Indian auto stocks began in March, ending their five-month losing streak, aided by a broader stock market rebound amid easing global trade tensions and improvement in domestic fundamentals.
Expectations of a domestic economic recovery in the current fiscal year—especially driven by urban consumer demand—has boosted optimism around auto stocks, as investors bet that recent fiscal and monetary measures will help revive consumer spending and support stronger vehicle sales.
Additionally, this positive sentiment was further strengthened by U.S. President Donald Trump’s announcement of a pause on tariffs for auto imports, trade agreements with China and the U.K., and hopes that India could soon finalize a trade deal with the U.S., all of which helped maintain the positive momentum in the auto sector.
Will the rally sustain in the coming months?
While auto stocks have rebounded sharply from their recent lows, the majority of the stocks have seen cuts in their target multiples following their March quarter performance.
Weak demand for passenger vehicles and rising costs weighed on the performance of car manufacturers, while subdued rural demand impacted two-wheeler sales. Looking ahead, the Federation of Automobile Dealers Associations (FADA), in its April sales data report, maintained a cautiously optimistic near-term outlook for the auto sector.
A strong Rabi harvest and an above-normal monsoon forecast are expected to support rural sentiment, although concerns remain as rural spending continues to outpace income growth.
The RBI’s recent liquidity measures could ease lending rates, potentially boosting demand. In the two-wheeler segment, the ongoing marriage season offers seasonal tailwinds, though tighter credit remains a constraint.
FADA believes that passenger vehicle sales may remain subdued in the short term as buyers await new model launches and financing remains selective. Meanwhile, commercial vehicle demand remains flat, challenged by competition from electric three-wheelers, though OEM-driven schemes are offering some support.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
