Festive rally in auto sector: Citi gives green light to three top stocks, check details
Published on 12/09/2025 03:13 PM
India’s automobile industry is heading into the festive season on a high note. Demand is picking up ahead of Dhanteras and Diwali and a surprise cut in GST rates has given customers an early gift. Brokerage house Citi has reiterated its bullish view on the sector, naming Maruti Suzuki, Mahindra & Mahindra (M&M) and Hyundai as its top picks.
Citi said the auto sector looks set to outperform as consumer sentiment strengthens and price reductions filter through to bookings. It has kept ‘buy’ ratings on all three stocks while sharply lifting their target prices.
Citi raised Maruti Suzuki’s target price from Rs 14,400 to Rs 17,500 — a potential upside of 14–16 per cent from current levels. The brokerage expects the small-car market, which had cooled, to regain momentum. Maruti plans to launch two new models soon, expanding its line-up alongside already strong exports.
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For M&M, Citi raised the target to Rs 4,170 from Rs 3,700. The cut in GST on SUVs over four metres, from 50 per cent to 40 per cent, is expected to directly benefit Mahindra’s Scorpio-N and XUV700 models. The drop in GST on tractors from 12 per cent to 5 per cent should also lift rural demand, with M&M being India’s largest tractor maker.
Citi increased Hyundai’s target price to Rs 2,900 from Rs 2,400. The carmaker is ramping up capacity at its new Talegaon plant in Maharashtra, with production slated to begin by end-2025. Analysts expect Hyundai’s SUV portfolio, export push and possible new-model announcements around 15 October to support future growth.
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Senior Sub-editor at Zee Business English
shweta.shukla@India.com
Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.