Auto Stocks Fall: TVS Motor Company, Ashok Leyland and More Drop as Crude Oil Surges

Auto stocks came under selling pressure in Thursday’s session as investors booked profits after a recent rally. The sector has slipped nearly 3% in the last 2 trading sessions.

Major stocks like TVS Motor Company, Ashok Leyland, and Samvardhana Motherson International fell up to 4%. 

Other auto companies including Mahindra & Mahindra, Hero MotoCorp, UNO Minda, Sona BLW Precision Forgings, and Eicher Motors also declined around 2–3%.

Crude Oil Surge Is the Main Trigger

The biggest reason for the fall in auto stocks is the sharp rise in crude oil prices. Brent crude jumped from about $90 per barrel to nearly $102 in just a few days due to tensions in West Asia and risks to oil supply.

Higher crude oil prices affect the auto sector because:

• Fuel becomes more expensive, reducing vehicle demand
• Raw material and logistics costs increase
• Overall inflation risk rises

Nifty Auto Index

The Nifty Auto Index tracks the performance of India’s automobile sector in the stock market and includes 15 actively traded listed companies. These companies represent key segments such as passenger vehicles, two-wheelers, three-wheelers, auto ancillaries and tyre manufacturers, making the index a broad indicator of the overall auto industry’s market performance.

Top Constituents by Weightage

The index is heavily weighted towards leading automobile manufacturers and auto component companies. Mahindra & Mahindra holds the highest weight, followed by Maruti Suzuki, Bajaj Auto, Eicher Motors and TVS Motor. Other important contributors include Hero MotoCorp, Tata Motors Passenger Vehicles, Samvardhana Motherson International, Bharat Forge and Ashok Leyland, reflecting a mix of vehicle makers and ancillary players.

Read More: Gold Jumps 1% to ₹1,53,699 on MCX as Dollar and Crude Fall After US Extends Iran Ceasefire.

Conclusion

Auto stocks are facing short-term pressure mainly due to rising crude oil prices and global tensions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.