New Delhi, July 12 -- India's auto original equipment manufacturers (OEMs) are likely to witness margin pressures in Q1FY26E, impacted by higher raw material (RM) costs and operating deleverage, according to a report by HDFC Securities.

The report added that elevated prices of key inputs, particularly steel and platinum group metals, are expected to weigh on gross margins, while lower seasonal volumes may further strain EBITDA margins.

For two-wheeler (2W) OEMs, an adverse domestic product mix, weaker export contribution, and lower electric vehicle (EV) mix have added to the challenges.

The report added that minor pricing revisions are expected across two-vehicles (2W) and commercial vehicle (CV) players, triggered by the implementatio...