Citi: Macro Tailwinds to Drive Indian Auto Sales in 2026; Favors Maruti, M&M

• Citi expects macro tailwinds like GST, interest rate cuts, and income tax restructuring to drive Indian auto sales in 2026.
• Citi's top picks include Maruti Suzuki and Mahindra & Mahindra, forecasting car sales to rise over 5% in FY26 and FY27.
• Automakers' gross margins are projected to dip in 2026 due to increased competition and rising costs.
• Geopolitical uncertainty and global demand are seen as negatives for Tata Motors Passenger Vehicles and auto parts manufacturers.
• The Nifty Auto index dropped on December 15, partly due to Mexico's new 50% tariff on Indian goods effective January 2026, with M&M and Eicher Motors as top losers.

Why It Matters: This impacts your investment in Indian auto stocks and future market trends.