The shares of two major auto stocks, Eicher Motors Ltd. and Maruti Suzuki India Ltd., are drawing significant attention in the market. Both companies have been key drivers behind the strong performance of the NSE Nifty 50 index and NSE Nifty Auto index in 2025.
Eicher Motors and Maruti Suzuki India share prices have risen 41% and 47%, respectively, on a year-to-date basis. Meanwhile, the NSE Nifty 50 index rose 9% and the NSE Auto gained 18% in the calendar. In this article, let’s explore the reasons behind the stock rally and identify the key factors to watch in 2026.
Key Reasons Behind Eicher Motors and Maruti Suzuki’s Success in 2025
Eicher Motors and Maruti Suzuki
Eicher Motors Ltd. is an Indian multinational automotive company that is the parent company of the motorcycle brand Royal Enfield and also a partner in the joint venture VE Commercial Vehicles Ltd. (VECV) with AB Volvo, which manufactures trucks, buses, and engines.
With a market capitalization of Rs. 1,97,495.45 crores on Wednesday, the shares of Eicher Motors Ltd jumped upto 0.7 percent, reaching a high of Rs. 7272.00 per share compared to its previous closing price of Rs. 7217.20 per share.
Maruti Suzuki India Limited is the largest passenger car manufacturer in India, formed in 1981 as a joint venture between the Indian government and Suzuki Motor Corporation of Japan. The company is known for producing affordable, fuel-efficient cars and has achieved a dominant market share through its focus on customer delight and agile manufacturing.
With a market capitalization of Rs. 5,08,538.30 crores on Wednesday, the shares of Maruti Suzuki India Limited jumped upto 2 percent, reaching a high of Rs. 16200.00 per share compared to its previous closing price of Rs. 15882.95 per share.
Reason Behind the Rally
Maruti Suzuki India is the leading manufacturer of small cars in the country. The outlook for small car sales has become more positive following the government’s simplification of the Goods and Services Tax (GST) structure. With the introduction of GST 2.0, there is an expectation that small car sales will see a revival in the domestic market, which has contributed to the rise in Maruti Suzuki India’s share price.
Maruti Suzuki India set a target to reach 4 lakh vehicle exports for the financial year 2026. Its Fronx variant has already crossed 1 lakh exports. For Eicher Motors, GST 2.0 boosted the pre-buy of bikes under 350 cc. The automotive company is bringing back popular models like Black Bullet and Battalion.
What’s Ahead?
Maruti Suzuki India plans to launch the E-Vitara in the Indian market in 2026. The automaker aims to introduce eight new models by the financial year 2030. Key factors to monitor include whether the weight criteria in the CAFÉ norms get approved, which would be positive for Maruti Suzuki, and whether the momentum of small cars continues.
Currently, 77% of brokerages have a Buy rating on Maruti Suzuki India stock, up from 70% previously. Meanwhile, 14% have a Hold rating, and 8% have a Sell rating. Eicher Motors is set to launch its electric motorcycle, the Flying Flea, an event that investors are likely to watch closely. Additionally, they should monitor the growth of VE Commercial Vehicles following the launch of new light commercial vehicles.
The potential for incremental margin upside for Eicher Motors appears limited, and as of now, the percentage of buy recommendations for the stock remains unchanged at 51%, while hold recommendations have risen to 37% from 27%. Meanwhile, sell recommendations have decreased to 14% from 22% at the beginning of the year.
Written by Sridhar J
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