Here's why auto stocks have made solid gains this month

Auto stocks like M&M, Eicher Motors, and Maruti have gained between 5 percent and 15 percent so far in April. For the year, Bajaj Auto, M&M and Maruti are the biggest gainers, up between 8 percent and 15 percent.

The semiconductor chip supply situation has been improving over the past few months, as stated by the companies. The demand has picked up significantly, and a lot of the new launches are seeing a high waiting period.

Besides, the companies have also managed to take adequate price hikes to pass on the higher raw material costs.