Auto-matic Gains: Eicher to Maruti Accelerate on Australia Angle

Shares of top automobile companies like Eicher Motors, Maruti Suzuki, and TVS Motor increased by up to 2% following news that India may seek Australia's help for critical raw materials to power its booming auto sector. The rally comes as investor confidence grows as India-Australia economic collaboration gathers pace with the ambitious 2025 initiative with the aim of boosting trade and ensuring supply chain security.

 

Key Highlights:

 

•⁠  ⁠India and Australia celebrated the third anniversary of the Economic Cooperation and Trade Agreement (ECTA), having already pushed bilateral trade to $24 billion and increasing Indian exports to Australia by 14% in FY24.

 

•⁠  ⁠The new road map identifies automotive components and metalliferous ores as priority industry sectors, with Australia as the major supplier of critical raw materials to Indian industry.

 

•⁠  ⁠The latest policy moves, including the reduction of import duty and actively pursuing free trade agreements with the UK and the EU, are making India an even more attractive market for global auto players.

 

•⁠  ⁠The government's focus on making sure raw material imports are ensured is going to drive further growth in the auto and EV industries in India, encouraging local production as well as export schemes.

 

Prediction: As India diversifies supply chains and leverages strategic trade agreements, auto shares will benefit from improved access to raw materials and lower inputs. The trend will accelerate India's global automotive production hub, and investors and market players will enjoy long-term benefits.

 

Source: India Briefing, Economic Times