Indian auto stocks to get boost from likely govt wage hikes, Goldman Sachs says

Indian automakers and related stocks poised to gain from India's potential pay hikes, says Goldman Sachs

GS expects 5 mln govt employees to get 14%-19% more per month after 8th Pay Commission hike, which, along with monthly tax savings post FY26 budget, will fuel demand in auto sector

Notes 7th Pay Commission (2016-2018) drove strong autos growth

Sees Eicher Motors EICH.NS, TVS Motor TVSM.NS, Maruti Suzuki MRTI.NS and Uno Minda UNOI.NS as likely beneficiaries

EICH, TVSM and MRTI shares are up 13.3%, 3% and 9.7%, respectively in 2025 so far, UNOI is down 10.2%

Nifty auto index .NIFTYAUTO down 4.5% in 2025