Automobile company’s shares surge after govt cut excise duty on fuel

26 May 2022 CW Team

Shares of automobile manufacturers got a boost after the government slashed excise duty on fuel and imposed an export duty on steel inputs.

Two-wheelers, in particular, are high on investors' radar as they could profit the most from the government actions.

Hero MotoCorp, Ashok Leyland, and Bajaj Auto are the top choices of analysts' after the government's move.

The Bombay stock exchange (BSE) Auto index acquired the most among sectors on Monday, ending up 1.9% at 25,355.47. The Auto index gains were led by Ashok Leyland, Maruti Suzuki India, and Mahindra & Mahindra (M&M) gained about 4% each. Hero MotoCorp and TVS Motor Company grew by 1.5% each. Tata Motors acquired 0.9% and gained 0.9%, and Eicher Motors ended up 1.3%.

Analysts said the levy of export duties on steel inputs and outputs and reduction of customs duty on inputs is a booster for the sector, which has been encountering input price issues.

This is good for auto inventories because they were reeling under high input price pressures. Steel exports from India may become uncompetitive and domestic costs will come down, which is good for the auto industry as they will be able to maintain margins, and they don't require to raise the cost of the vehicles, said Gaurav Dua, senior VP at Sharekhan by BNP Paribas.

Among two-wheelers, Dua is bullish on Bajaj Auto and Mahindra & Mahindra among four-wheelers.

Petrol and diesel costs have increased 21% and 15%, respectively, in the last year and about 58% each in the last two years. The two-wheeler space has been most impacted by inflation due to the elevation in the total price of ownership over the last three years.

While all the original equipment manufacturers will benefit in uneven proportion, the key beneficiaries of the above steps in the auto sector would be Hero MotoCorp and Ashok Leyland, said Motilal Oswal.

Image Source

Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Real Estate

01 Dec 2025

Serene, Gardencity to Develop Rs 3 Billion Senior Living Project in Bengaluru

Serene Communities, a leading senior living brand, has partnered with Gardencity Realty to develop a premium senior living community in Budigere, one of Bengaluru’s fastest-growing residential micro-markets. The project will span approximately 300,000 sq ft, with a Gross Development Value of about Rs 3 billion, and will add roughly 250 senior-friendly residences to the city’s growing retirement housing segment.The launch forms part of Serene Communities’ national expansion strategy. The company has 11 new projects under development with a planned investment of Rs 25 billion that will add..

Alliance City Developers Marks Major 2025 Milestones in Vile Parle

Alliance City Developers Realtors has announced significant project milestones and expansions in 2025, underscoring what the company terms a transformational year. The developer completed multiple residential projects and launched two premium developments in Vile Parle (East), one of Mumbai’s most sought-after neighbourhoods.During the year, Alliance Legacy in Matunga (East) received its Occupancy Certificate (OC), while Alliance Eternis in Borivali (West) and Alliance Vista in Vile Parle (East) were granted Completion Certificates (CC), marking final project delivery. Alliance Abhimanyu is ..

Moro Hub and PwC Middle East Partner to Accelerate Smart City Solutions

Moro Hub, a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), has announced a strategic collaboration with PwC Middle East to advance Smart City, Integrated Command Centre (ICC), Critical Infrastructure Monitoring and Internet of Things (IoT) initiatives across the region. The partnership brings together Moro Hub’s digital infrastructure and IoT capabilities with PwC’s global expertise in digital trust, smart city strategy and cybersecurity to support the UAE’s vision for intelligent and sustainable cities.“Our collaboration with PwC Middle Ea..