New Delhi, Aug. 19 -- India's automobile sector is likely to maintain steady demand momentum in the near term, supported by GST 2.0-led benefits across segments, however, persistent commodity-cost pressures and weakness in global auto markets are expected to keep margins under pressure, according to a research report by Kotak Institutional Equities.

The brokerage expects margin pressure to moderate sequentially for most original equipment manufacturers (OEMs), but sees continued raw-material headwinds for tractors, commercial vehicles and tyre companies in the second quarter of FY27d due elevated rubber and aluminium prices. Although, the brokerage noted that the rubber and aluminium prices came off highs towards the end of first quarter...