Maruti Suzuki Share Price Clocks Biggest Intraday Gain In 5 Years As GST Proposal Lifts Automobile Demand

Shares of Maruti Suzuki India witnessed a remarkable rally on August 18, 2025, gaining as much as 8% in a single day. The sharp rise came amid expectations of a significant GST rate cut, particularly benefiting small and hybrid passenger vehicles, the core sales segments of India's largest car manufacturer.

Potential GST Cut Spurs Strong Buying in Maruti Suzuki

On August 18, 2025, Maruti Suzuki shares surged to ₹13,884, marking their strongest intra-day performance in nearly 5 years. The rally has been attributed to reports of a possible GST rate rationalisation for four-wheeler vehicles. As per news reports, under the new proposal, GST on cars below 1,200 cc may be reduced to 18% from the current 28%. Additionally, hybrid cars under 4 metres with up to 1,200 cc petrol or 1,500 cc diesel engines could see similar tax relief.

The move is expected to significantly cut the cost of small and hybrid vehicles, which form the bulk of Maruti Suzuki’s sales volume. As these vehicles currently attract both 28% GST and a cess between 1% and 3%, the new rates could provide a major price reduction for consumers, thereby driving demand.

Wider Implications for the Passenger Vehicle Sector

The automotive sector, which contributes 14% to the overall GST collection, heavily comprises vehicles in the 28% tax bracket. By revising tax rates downwards, the government aims to stimulate demand in the struggling passenger vehicle market.

Historical data suggests that similar measures were effective during 2008, when rate reductions coupled with government fiscal incentives led to a 20% surge in vehicle demand. With Maruti Suzuki’s strong presence in the small and hybrid vehicle segments, the company stands to gain considerably from the proposed tax relief.

Read More: Maruti Suzuki Signs MoU with PNB to Strengthen Dealer Financing Network!

Maruti Suzuki Share Price Performance

On August 18, 2025, Maruti Suzuki share price opened at ₹13,703.00 on NSE, above the previous close of ₹12,936.00. During the day, it surged to ₹14,023.00 and dipped to ₹13,664.00. The stock is trading at ₹13,994.00 as of 11:25 AM. The stock registered a significant gain of 8.18%.

Over the past week, it has moved up by 11.09%, over the past month, it has moved up by 13.90%, and over the past 3 months, it has moved up by 8.90%.

Conclusion

Maruti Suzuki’s strong stock performance reflects growing investor confidence, driven by anticipated tax reforms. A GST rate cut would lower vehicle costs, likely improving sales and market sentiment. If implemented, the tax rationalisation could prove transformative for the Indian automotive sector.

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