#autosector

Have you ever wondered how car makers impact component companies?

Car companies aren’t the real winners, The parts makers are.

The strong growth from Auto OEMs has trickled down to the component makers. Motherson is up over 53%, and UNO Minda is up 40% in just 12 months!

Check out our full Q3FY26 Auto Ancillary Sector Report to see the numbers behind the growth

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The GST Council approved a major rate cut, targeting the road transport and auto sector. This reform benefits manufacturers and farmers. It also aids MSMEs and transport operators. Lower prices spark demand for two-wheelers and cars. Jobs surge in manufacturing and logistics. The Make in India initiative gains strength. Cleaner mobility options emerge as a priority.

The council reduced GST rates significantly. Two-wheelers under 350 cc now face 18% GST. Small cars also drop to 18% from 28%. Large cars simplify to a flat 40% with full ITC. Tractors fall to 5% from 12%, aiding farmers. Buses with 10+ seats now cost 18%. Commercial goods vehicles also hit 18%. Auto components benefit with an 18% rate. Insurance for goods carriage drops to 5% with ITC.

Benefits Across the Ecosystemhttps://x.com/nitin_gadkari/status/1963293711263305926?ref_src=twsrctfwtwcamptweetembedtwterm1963293711263305926twgr63a519c7b602c9ae763098da64eecc5f9566a936twcons1_c10&ref_url=httpswww.pib.gov.inPressReleasePage.aspxPRID2165916

Employment soars with over 3.5 crore jobs supported. MSMEs thrive in tyres, batteries, and steel sectors. Drivers and mechanics gain new opportunities. Cleaner mobility pushes for fuel-efficient vehicles. Old, polluting models face replacement. Public transport adoption reduces emissions. Logistics improves with lower freight rates. Exports strengthen under PM Gati Shakti. Agriculture and e-commerce benefit greatly.