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Hyundai Motor India Ltd.’s plan for one of India’s largest share sales may further boost valuations for the nation’s already-buzzing automakers.The listing may value the South Korean carmaker’s Indian unit at $25 billion, Bloomberg News reported previously. That would make it the nation’s fourth biggest automaker by market value, a milestone analysts say bodes well for the nation’s auto sector. Hyundai’s share sale “will lift the valuation for the sector as it’s a big IPO and boosts the sector’s charm as a play on global sourcing from India,” said Deven Choksey, managing director at DRChoksey FinServ Pvt. The implied valuation for the IPO, based on the the company’s latest annualized profit, works to about 25 times earnings, said Devi Subhakesan, an analyst on Smartkarma. That’s similar to market leader Maruti Suzuki India Ltd.’s one-year forward estimated earnings. Tata Motors Ltd., the owner of Jaguar Land Rover, trades at nearly 15 times, leaving room for expansion. 111113143Local auto stocks have already added $70 billion in market value so far this year, rising nearly 40% — over four times the advance in the country’s equity benchmark. The rally is being fueled by rising demand for new vehicles in the world’s fastest-growing major economy. “One more global player in India market means higher allocation and larger funds getting attracted to the Indian auto sector,” said Choksey.Hyundai’s guidance on electric vehicles has added to the optimism about the industry’s sales outlook. The share of EVs in India is expected to swell about nine-fold to as much as 20% by 2029, according to the IPO filing. Both Mahindra & Mahindra and Tata Motors, among the oldest players in the sector, are also focusing on EVs.Consumers are “looking for lifestyle upgrade, which means there’s going to be a persistent demand for products that meet this expectation,” said Abhishek Banerjee, founder and chief executive officer of Lotusdew Wealth and Investment Advisors. Demand for electric vehicles and hybrids will continue to drive shares higher, he said.

India’s industry lobby groups have asked officials of the Finance Ministry consider personal tax benefits for the country’s middle-class and a simplification in direct tax regime in the upcoming Union Budget announcement.In a meeting with Revenue Secretary Sanjay Malhotra, CII President Sanjiv Puri advocated for marginal tax relief for incomes up to Rs 20 lakh and called for reduced excise duty on petrol and diesel. He noted that while Brent crude prices have dropped by 40 per cent, pump prices in Delhi have only fallen by Rs 1.8 per litre.Certain sectors in India have been impacted due to skewed consumer spending, as highlighted in the country’s latest GDP readings. This gulf between India's enviable GDP growth rate figures and the slowing consumer demand seem to be a spot of bother for certain businesses. Sops aimed at reducing tax burden are likely to have a positive impact on consumer spending in the country.ALSO READ: Fin Min considering income tax rate cuts to boost consumptionConsumer companies are optimistic about FY25 prospects owing to the IMD's forecast of plentiful monsoon. Puri also proposed increasing the annual PM-KISAN payout from Rs 6,000 to Rs 8,000 and raising minimum wages under the government’s labour scheme MGNREGA. He argued that these measures would boost disposable income and stimulate consumer spending. "The middle class is currently taxed at a rate of 30%, leaving them with little disposable income for savings and other needs. We suggested that the 30% tax slab should apply only to incomes above Rs 40 lakh," news agency ANI quoted Mukul Bagla, chair of the direct taxes committee at PHDCCI as saying. FICCI has proposed simplifying the capital gains tax system by streamlining it into two or three broad categories based on asset types, holding periods for long-term status, and eligibility for indexation benefits. They suggest categorizing assets into three groups: equity instruments, debt, and other assets, with specific rates set for both long-term and short-term gains. FICCI also recommends uniform tax rates for residents and non-residents, eliminating the current distinctions. "Our suggestions have focused on maintaining the growth momentum, while seeking simplification for ease of doing business and reducing litigation. Where litigation has started, the idea should be to find a workable solution for everyone," said Subhrakant Panda, the chamber's immediate past president.