Auto stocks roar back on easing crude prices

The rally was driven by cooling crude oil prices and improving demand outlook.

Leading the charge, Ashok Leyland zoomed 12.53%, emerging as the top gainer in the pack. Shares of Tata Motors surged 9.91%, Tata Motors Passenger Vehicles climbed 8.11%, while TVS Motor Company advanced 7.64%.

Among passenger vehicle majors, Maruti Suzuki India jumped 7.18%, and Mahindra & Mahindra gained 7.06%.

Premium motorcycle maker Eicher Motors rose 7.01%. Two-wheeler heavyweights also joined the rally, with Hero MotoCorp up 5.28% and Bajaj Auto adding 3.80%.

The rally was largely triggered by a sharp decline in crude oil prices following easing geopolitical tensions, which is seen as a key positive for the auto sector. Lower fuel costs typically improve affordability for consumers and enhance operating margins for transporters, thereby boosting demand for both passenger and commercial vehicles.

In commodities, Brent crude for June 2026 settlement dropped $16.29 or 14.91% to $92.98 per barrel.

Traders anticipate that the twin tailwinds of softer input costs and a potential pickup in demand could support earnings momentum for auto companies in the coming quarters, sparking broad-based buying across the sector.