Auto stocks rally up to 140% in 2025. How smooth will the road be in 2026?

India's auto sector is experiencing a robust rally, driven by a significant GST rate reduction in September. This policy shift has spurred broad-based demand across passenger vehicles, two-wheelers, tractors, and commercial vehicles. Auto ancillaries are outperforming, fueled by strong exports and EV component growth, setting a positive outlook for 2026.