Auto stocks in India rose sharply on June 6, 2025, after the Reserve Bank of India’s unexpected 50 basis points repo rate cut. Ashok Leyland, Hero MotoCorp, and Samvardhana Motherson were among the key gainers, supported by expectations of stronger demand from lower lending rates.
Shares of leading Indian auto companies saw a sharp rise on June 6 after the Reserve Bank of India (RBI) surprised the market with a 50 basis point cut in the repo rate during its monetary policy announcement.
Among the key gainers were Ashok Leyland, a commercial vehicle manufacturer based in Chennai, Hero MotoCorp Ltd, India’s largest two-wheeler company, and Samvardhana Motherson International Ltd, a global auto components supplier headquartered in Noida, Uttar Pradesh.
The unexpected move by the Reserve Bank of India (RBI) also included a 100 basis points cut in the Cash Reserve Ratio (CRR), which is likely to inject more liquidity into the banking system. The resulting drop in lending rates is expected to boost consumer demand for passenger vehicles, two-wheelers, and tractors — all rate-sensitive categories.
The Nifty Auto index reflected the optimism by rising around 1.6% in early trade. Ashok Leyland shares climbed nearly 4%, while Hero MotoCorp and Maruti Suzuki India Ltd gained between 2% and 3%. Balkrishna Industries Ltd, Bajaj Auto Ltd, TVS Motor Company, Eicher Motors Ltd, and Bharat Forge Ltd also registered solid gains of 1% or more.
The central bank’s measures are being seen as a positive trigger for the auto industry, which had been experiencing moderate demand and cautious lending trends over the past quarters.
