Maruti Suzuki, Mahindra & Mahindra and Tata Motors shares have fallen between 16 % and 32 % in 2026, despite the auto sector recording record sales volumes and a GST rate cut in the last year. The sector has seen a 10 % to 13 % reduction in ex‑showroom prices for small cars and compact SUVs following the GST 2.0 reform introduced in September 2025, which lowered the tax from 28 % plus cess to a flat 18 %. Large cars and SUVs now carry a flat 40 % GST with the compensation cess removed.

September 2026 sales and market shares for the leading automakers are as follows: Maruti Suzuki India sold 1.81 lakh vehicles, up 36.9 % year‑on‑year, capturing 39.7 % of the market. Tata Motors PV dispatched 68,810 units, up 15.3 % YoY, holding 15 % market share. Mahindra & Mahindra moved 64,092 vehicles, up 14 % YoY, with a 14 % share. Hyundai Motor India sold 57,166 units, up 10.9 % YoY, holding 12.5 % of the market. The sector also recorded double‑digit wholesale dispatches across all leading automakers, reflecting the sustained volume boost from the GST cut for consumers in the market.

Stock performance in 2026, calculated on the October 8, 2026 closing, shows a decline of 32.7 % for Maruti Suzuki India to a 52‑week low of ₹11,225, 25.8 % for Mahindra & Mahindra to ₹2,744, 25.6 % for Tata Motors PV to ₹272.2, and 16.6 % for Hyundai Motor India to ₹1,658. These figures illustrate the sharp pullback from the highs reached during the multi‑year rally of 2024 and 2025.

Raw‑material price hikes have eroded margins across the sector. Aluminium, steel, copper, rubber, batteries and energy costs have spiked amid the West Asia conflict and the US‑Iran war, disrupting supply chains and raising logistics expenses. Maruti Suzuki and Tata Motors implemented three price hikes in 2026, while Mahindra & Mahindra raised prices twice. In Q1FY27 Maruti Suzuki sold 6.83 lakh vehicles, up 29.3 % YoY, and its revenue rose 35.9 % YoY to ₹52,470 crore, yet net profit fell 10.8 % YoY to ₹3,352 crore and EBITDA margin dropped from 12 % to 8.2 %.

Maruti Suzuki’s market share fell from a 13‑year high above 50 % to 39.2 % in FY26, the lowest in 13 years, as consumer preference shifted to SUVs and utility vehicles. The brand’s stronghold in entry‑level and small hatchbacks—Wagon R, Swift and Baleno—has weakened as two out of every three new cars sold are now SUVs or utility vehicles, dominated by Mahindra & Mahindra and Tata Motors. Delayed entry into the electric‑vehicle segment has also dampened investor sentiment about future growth.

Tata Motors PV shares have suffered due to Jaguar Land Rover’s (JLR) slowdown, which accounts for roughly 80 % of its consolidated revenue and profit. A cyber‑attack‑induced production halt, supply‑chain constraints and the Middle East war have hit JLR, leading to an 80.3 % YoY drop in consolidated net profit to ₹775 crore in Q1FY27, while revenue grew 9.2 % to ₹95,799 crore. The high commodity prices and JLR weakness have forced a profit booking correction, pulling the stock back from its all‑time highs of 2024 and 2025.