Wild ride for auto stocks in markets so far in FY24 as they burn rubber

Full-throttle performance driven by product premiumisation across vehicle manufacturers

Automotive (auto) and auto ancillary stocks have been in the fast lane thus far in 2023–24 (FY24), with the National Stock Exchange Nifty Auto Index surging nearly 27 per cent, outperforming the Nifty50, which has gained roughly 11 per cent during this period.

The top-gear performance of auto stocks at the bourses, according to A K Prabhakar, head of research at IDBI Capital, has been triggered by the premiumisation of products across vehicle manufacturers, which has seen vehicle sales remaining relatively stable.
 

“It is not about higher sales figures now, but about premiumisation. The highest sales are now in the