New Delhi, March 13 -- India's auto industry is booming, with annual vehicle sales surpassing 4 million, making it the world's third-largest car market. The Nifty Auto Index has surged, delivering a 36% compound annual growth rate (CAGR) from pandemic lows, significantly outperforming the broader Nifty 50. Within Nifty Auto, Tata Motors holds the third-largest market share in India and has led the sector's rally, posting an impressive 60% CAGR since April 2020.

Read this | Tata Motors sees a top-tier exodus ahead of demerger

But that rally is losing momentum. Since September, the Nifty Auto Index has slipped 25%, while Tata Motors has erased nearly a third of investor wealth. Concerns over an economic slowdown, stricter emission norms, ...