Auto Stocks Jump on Hopes of GST Relief for Small Cars and Two-Wheelers
Shares of leading automobile makers rallied amid expectations that the government may cut GST on small cars and two-wheelers from 28% to 18% to boost demand. A lower tax could translate into reduced retail prices and stronger festive-season (Diwali) sales.
Key Takeaways
- Speculation builds around a GST cut on small cars and two-wheelers to 18%.
- Auto stocks rose across four-wheelers and two-wheelers on the day.
- Potential price cuts could lift demand during the Diwali period.
Market Moves (Close Prices)
| Company | Close (Rs.) | Change (%) | Notes |
|---|---|---|---|
| Maruti Suzuki | 14,090 | +9.0% | Up Rs. 1,154 |
| Hyundai Motor India | 2,446 | +9.0% | โ |
| TVS Motor | 3,213 | +6.4% | Up Rs. 193 |
| Hero MotoCorp | 4,990 | +6.0% | โ |
| Bajaj Auto | 8,592 | +4.6% | โ |
| Eicher Motors | 5,915 | +2.6% | Includes Royal Enfield; CV exposure |
Outlook
Until there is clarity from the government on GST revisions, sentiment may remain supportive for auto shares. A confirmed rate cut could make entry-level cars and two-wheelers more affordable, potentially accelerating retail demand.
Note: Figures are end-of-day prices and percentage changes as reported; โโโ indicates absolute change not provided. All amounts shown as Rs.
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