India auto stocks set for best month in over a year on tax cut optimism

** Auto stocks NSE:CNXAUTO jump 6% in August, leading sectoral gains

** Fifteen-member Nifty Auto index set for best month since June 2024, when India's ruling alliance retained power

** August gains come after PM Modi said his government would lower GST on various goods by October

** Small cars, two-wheelers likely to benefit the most - tax rate could drop to 18% from 28%

** Hero MotoCorp, India's largest two-wheeler maker by sales NSE:HEROMOTOCO, top gainer on auto index on Friday, up 20% in August

** Heavyweight Maruti Suzuki NSE:MARUTI up 17% this month

** Analyst ratings on auto stocks evenly split between "buy" and "hold"; tyre maker Balkrishna Industries NSE:BALKRISIND only stock rated "sell" - LSEG data

** Auto stocks up ~10% YTD vs 3.7% rise in benchmark Nifty 50 NSE:NIFTY