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The December quarter (Q3 FY23) results signal that the worst is behind auto original equipment manufacturers (OEMs). Tailwinds from pricing power and softening input costs are clearly working in their favour.
Passenger car leader Maruti Suzuki India (Maruti) led the pack, turning in a robust 306 basis points (bps) year-on-year (yoy) expansion in operating margin. Two-wheeler maker TVS Motor Company (TVS) too rode out of the quarter with resilient margins. Key gains are trickling in from softening metal and crude prices that dented profit margins across manufacturing sectors for nearly six to eight quarters.