Commodity storm claws back 30% of GST cut gains for Indian automakers
Post-September GST cut of 10 percentage points fueled record FY26 sales—two-wheelers up 11%, PVs up 8%—but West Asia conflict triggered 40-50% QoQ commodity inflation. Automakers pushing 1-3% price hikes, trimming discounts, and localizing suppliers; M&M reviewing ₹1.06 trillion supply chain across 100,000+ parts.
Automakers absorbing commodity cost surge post-West Asia war, with modest 1-3% price hikes eroding gains from September GST cut that drove record FY26 sales. Firms cutting discounts, delaying spending, localizing suppliers to protect demand.