Nifty Auto Down 13% In One Month: These Stocks Could Be Your Next Big Opportunity | Check Target Price

The Nifty Auto index has emerged as one of the worst-performing sectoral indices over the past month, falling nearly 13% in March and about 16.7% so far in 2026. The sharp decline comes amid broader bearish sentiment in the Indian stock market, driven by heightened global uncertainties following the onset of the Iran-US war on February 28.

Nifty Auto was down close to 2.55% during Monday's intraday trading session with stocks like Ashok Leyland, Exide Industries, Eicher Motors, Bharat Forging, Mahindra & Mahindra, TVS Motor, TMPV, etc were among top sectoral losers.

Why Auto Stocks Are Falling?

The decline in auto stocks came as part of a weaker sentiment prevailing across the market as the Iran-US war kept the investors on edge. "Crude oil remains elevated near $107 a barrel, while the rupee has weakened to record lows against the dollar.

That combination is negative for autos, which are highly sensitive to fuel prices, input costs and imported components. At the same time, concerns around supply disruptions linked to the West Asia conflict and rising logistics costs are adding to uncertainty.

Even though underlying demand trends had been stable, the Street is now shifting focus from volumes to margin pressure, which is driving the correction across auto names," explained Harshal Dasani, Business Head, INVasset PMS.

What's Next For Automobile Stocks in Future?

High quality companies with strong domestic positioning, pricing power and healthy balance sheets can see some recovery if crude prices cool and currency volatility stabilises. Underlining the crude oil shock risks on automobile sector, Harshal Dasani added, "The structural demand story for Indian autos remains intact, but in the short term the sector is being driven more by macro headwinds than company-specific fundamentals."

While automobile industry continue to face the spillover effect due to Iran-US war in the West Asia, strong retail demand may support the industry. However, OEMs with export exposure to the Middle East are likely to witness weak exports in the near term, noted Motilal Oswal in its report released on Monday, March 30.

Top Auto Stocks That Are Likely To Perform

Mahindra & Mahindra, Tata Motors Passengers Vehicle Limited are likely to outperform the market peers. Motilal Oswal remained bullish on Maruti Suzuki India Limited, TVS Motor Company Limited and M&M.

		CMP	TP	% Upside
Company	Reco	(INR)	(INR)	Downside
Automobiles
Amara Raja Ener.	Neutral	702	891	27
Apollo Tyres	Buy	412	597	45
Ashok Ley.	Buy	163	238	46
Bajaj Auto	Neutral	8903	9416	6
Balkrishna Inds	Neutral	2150	2229	4
Bharat Forge	Neutral	1725	1597	-7
Bosch	Neutral	29630	35504	20
CEAT	Buy	3471	4579	32
Craftsman Auto	Neutral	6922	7096	3
Eicher Mot.	Neutral	6808	6960	2
Endurance Tech.	Buy	2263	2976	31
Escorts Kubota	Neutral	2841	3836	35
Exide Ind	Neutral	301	341	13
Happy Forgings	Buy	1177	1350	15
Hero Moto	Buy	5145	6804	32
Hyundai Motor	Buy	1815	2567	41
M&M	Buy	3041	4378	44
CIE Automotive	Buy	447	546	22
Maruti Suzuki	Buy	12388	17406	41
MRF	Sell	129474	129151	0
Samvardh. Motherson	Buy	109	148	35
Motherson Wiring	Buy	38	52	37
Sona BLW Precis.	Neutral	488	488	0
Tata Motors PV	Sell	303	323	7
Tata Motors CV	Neutral	428	431	1
TVS Motor	Buy	3444	4461	30

Auto Stocks Target Price Based on Motilal Oswal report

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