Why Tata Motors and Ashok Leyland stocks are racing ahead of the auto pack

Tata Motors and Ashok Leyland shares surged 12.4% and 15% respectively over the past four trading days, sharply outperforming the Nifty Auto index's 3.6% gain, driven by a 15% drop in Brent crude to around $80 per barrel that eased diesel cost concerns for fleet operators. Commercial vehicles benefit more from lower crude because diesel dependence remains high, with EV and CNG penetration much lower than in passenger vehicles, and fuel accounting for nearly half of a fleet operator's freight revenue. Tata Motors additionally recorded 22% volume growth in the first two months of Q1FY27 versus just 2% for Ashok Leyland, supported by its next-generation truck portfolio, even as both trade at a PE of 22 on FY27 estimates.