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Auto And Ancillaries Q4 Results Preview: Muted Volume Trends; Margin Compression Persists — DRChoksey
Maruti Suzuki remains DRChoksey's top pick, benefiting from rural recovery and an attractive valuation.
04 Apr 2025, 03:27 PM IST 
Margins are expected to remain under pressure during the quarter due to rising input costs, despite partial cushioning from operating efficiencies and a better mix.
(Photo: Lenny Kuhne/ Unsplash)
While recent structural changes in India’s tax regime may offer long-term economic benefits, their nearterm impact on auto demand appears limited. Given the constrained pool of direct taxpayers, most of whom either fall below the taxable threshold or contribute modestly, a meaningful revival in the entry level segment is expected to be gradual, reflecting the underlying income distribution challenges.
