Auto Sector Eyes Budget for EV Incentives, Infra Boost; Ashok Leyland Top Pick
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CNBC TV18•28-01-2026, 14:32
Auto Sector Eyes Budget for EV Incentives, Infra Boost; Ashok Leyland Top Pick
- •The auto sector anticipates the upcoming Budget to provide clarity on EV incentives and government infrastructure spending, crucial for demand, especially in commercial vehicles.
- •BNP Paribas analyst Kumar Rakesh identifies Budget-related triggers as key for investors, downplaying recent trade agreement concerns.
- •Ashok Leyland is BNP Paribas' top stock pick, with the CV industry entering an upcycle, allowing manufacturers to better pass on rising input costs.
- •Rakesh believes market fears regarding the India-EU FTA's impact on domestic OEMs are overstated, as CBUs are not the most relevant segment for India.
- •The FTA is expected to improve profitability for European automakers in India and support premiumization, rather than disrupt the mass-market segment.
Why It Matters: Auto sector looks to Budget for EV and infrastructure support; Ashok Leyland is a top pick amidst an improving CV cycle.
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