Auto OEMs, especially two-wheeler manufacturers, are facing pressure in Q1 FY26E due to increased input costs, operational challenges, and unfavorable product mixes.
Minor pricing revisions are anticipated for two-wheelers and commercial vehicles driven by the implementation of new regulations like OBD 2 norms and AC cabin norms.
Auto ancillary companies are also under strain due to subdued global demand, uncertain tariffs, and a mix of relief and risks related to raw material prices and freight costs.
Concerns over delays in labor return, a shortage of rare-earth magnets, and challenges in global processing alternatives are further impacting the automotive sector in the near and long terms.