India's auto sector saw strong sales growth in Q1, but rising input costs and supply disruptions led to 14 of 19 firms reporting profit margin pressures.
This happened despite sustained demand across all vehicle segments
Aug 25, 2026
12:12 pm
What's the storyIndia's automotive sector witnessed strong topline growth during the first quarter of the fiscal year, driven by record sales.
However, rising input costs, supply chain disruptions, and delayed price adjustments have led to a widespread contraction in margins.
Kotak expects auto demand to remain stable, but rising commodity costs and diesel prices could weigh on profitability.
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