Ola Electric, Bajaj Auto, Hero MotoCorp, Hyundai Motor, Eicher Motors and Maruti Suzuki Share Price Rally Up to 6% on Supply Assurance from China

Market Performance

Indian auto shares extended their upward trend on Tuesday, with major players showing strong gains:

• Ola Electric: up to 6%
• Bajaj Auto: up to 6%
• Hero MotoCorp: up to 6%
• Hyundai Motor: up to 6%
• Eicher Motors: up to 6%
• Maruti Suzuki: up to 6%

The Nifty Auto index advanced 1% in early trade, building on Monday’s nearly 5% jump. Overall, the Nifty Auto index has gained 11.21% year-to-date.

Main News

The rally in Ola Electric, Bajaj Auto, Hero MotoCorp, Hyundai Motor, Eicher Motors and Maruti Suzuki share price comes amid positive developments in supply chain assurances from China.

• China’s foreign minister, currently visiting India, assured that key concerns flagged by New Delhi — including the supply of rare earth magnets and tunnel boring machines — will be addressed.
• Rare earth magnets are crucial for EV motors, engine components, and wheel sensors, heavily used by auto manufacturers.
• China produces around 90% of the world’s rare earth magnets, making a steady supply crucial for Indian automakers.

Company Details

Bajaj Auto:

• Production of electric two-wheelers dropped 50% in July due to rare earth supply issues.
• Volumes in August and September are expected to remain constrained.

Hero MotoCorp:

• Confirmed supply security for both internal combustion and EV models through Q2 FY26.
• Key components such as EV motors and engine sensors are currently covered.

Tata Motors:

• Production not yet impacted but highlighted rare earth magnets as a potential future bottleneck.
• Exploring alternative supply options to secure operations.

Other auto leaders like Ola Electric, Maruti Suzuki, Hyundai Motor, and Eicher Motors also saw positive movement in share price, reflecting investor confidence in supply relief and domestic demand growth.

Summary of the Article

The recent rally in Ola Electric, Bajaj Auto, Hero MotoCorp, Hyundai Motor, Eicher Motors and Maruti Suzuki share price is driven by:

• Positive signals from China regarding rare earth magnet supply.
• Continued domestic demand growth, supported by potential GST cuts on vehicles.
• Short-term production challenges being mitigated by strategic sourcing and supply assurances.

The auto sector’s overall resilience and the government’s attention to key supply challenges have helped stabilize market sentiment, making the gains in the Nifty Auto index particularly notable.