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  5. Mahindra & Mahindra, Maruti, Eicher Motors: Auto stocks rally, NIFTY AUTO index surges 2%; top reasons to know

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Mahindra & Mahindra, Maruti, Eicher Motors: Auto stocks rally, NIFTY AUTO index surges 2%; top reasons to know

Swati Verma
By Swati Verma

3 min read | Updated on March 24, 2026, 10:59 IST

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SUMMARY

M&M share price: Several major automakers, including Tata Motors, BMW, Mercedes-Benz, and Audi, have announced price hikes on vehicles, effective April 1, 2026. Hikes ranging from 0.5% to 3% are driven by rising input costs, increased logistics expenses, and a depreciating rupee.

Stock list

M&M
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MARUTI
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EICHERMOT
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Auto stocks, March 24, 2026

The NIFTY AUTO index jumped as much as 2.4% to hit a high of 24,509.65 levels on the NSE. | Image: Shutterstock

M&M share price: Auto stocks were trading in positive territory on Tuesday, March 24, amid an across-the-board buying in markets following Trump's hints at de-escalation in the war with Iran after the conflict entered the fourth week.
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The announcement by the US president that the country has decided to halt strikes on Iran temporarily provided a much-needed boost to the investor sentiment across the globe, including India.

The announcement triggered a sharp decline in crude oil prices, a key input for several sectors, offering broad cost relief across the economy.

For India, a net importer of crude, the impact is especially significant, as lower oil prices help ease inflation, reduce import bills, and support overall economic stability.

Riding on this positive macro sentiment, auto stocks also saw a boost, given their strong sensitivity to fuel costs and input prices.

The NIFTY AUTO index jumped as much as 2.4% to hit a high of 24,509.65 levels on the NSE in the early trade. All 15 constituents were trading in the green.

The top gainers on the index were Mahindra & Mahindra (M&M), Eicher Motors, Maruti Suzuki India (MSIL), and Tata Motors PV, all rising up to 3%.

Here are the top reasons why auto stocks are in the green today.
Price hikes: Several major automakers, including Tata Motors, BMW, Mercedes-Benz, and Audi, have announced price hikes on vehicles, effective April 1, 2026. Hikes ranging from 0.5% to 3% are driven by rising input costs, increased logistics expenses, and a depreciating rupee. This is expected to support the auto companies.
Lower fuel prices: De-escalation in the war will lead to the easing of crude oil prices, which directly lowers petrol/diesel costs. This boosts disposable income and improves vehicle affordability, supporting demand, especially in entry-level cars and two-wheelers.

Retail prices for regular petrol and diesel have remained stable across India. However, public sector oil companies have increased prices for premium petrol and industrial diesel by approximately ₹2–₹2.35 per litre, effective March 20, 2026.

Easing inflation: Lower oil reduces inflation pressure, which can lead to stable or lower interest rates—making auto loans cheaper and supporting sales.

Improved margins for OEMs & ancillaries: Raw materials such as tyres, plastics, and chemicals are crude-linked; lower oil helps expand margins for both automakers and component companies.

Supply chain and logistics normalisation: De-escalation reduces risks to shipping routes (like the Strait of Hormuz), lowering freight and insurance costs, and ensuring a smoother supply of components.
Currency stability: Lower oil prices support the rupee (since India is a large importer), reducing import costs for components and improving profitability.
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.
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About The Author

Swati Verma
Swati Verma is a business journalist with over 11 years of experience. She writes on equities, corporate earnings, sectoral trends, and industry outlook, among others. At Upstox, she leads financial markets coverage.

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