New Delhi, Sept. 16 -- The Indian auto sector is expected to accelerate in the second half of FY26, with analysts turning bullish on the back of GST reforms, strong rural demand, and improving trade dynamics.

Brokerages Choice Broking and InCred Equities have revised their sector outlooks upward, highlighting five major factors that will drive growth in the auto stocks.

The recent GST restructuring is seen as a catalyst for auto sales recovery. Small cars, two-wheelers, and three-wheelers have moved to the lower 18% slab, while tractors have shifted from 12% to 5%. Large cars now attract a flat 40% rate.

According to analysts, this GST rate cut will revive demand suppressed by high costs from stricter emission and safety norms and repe...