Maruti Suzuki, Tata Motors, and M&M Share Price Surge as GST Cut Boosts the Auto Sector

India’s decision to cut GST on small cars has lifted auto shares to their highest level in almost 11 months. Companies like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M) saw sharp gains, while Eicher Motors also rose strongly.

The auto index emerged as the top gainer on the Nifty 50, with M&M jumping 7.4% and Eicher Motors climbing 3.1%.

GST Cut on Small Cars

The GST Council approved a major tax cut on small cars. Vehicles under 4 metres with petrol engines up to 1,200 cc or diesel engines up to 1,500 cc will now be taxed at 18% instead of 28%. Bigger or more powerful cars will continue to face a 40% GST.

This move is expected to boost demand for affordable models, especially Maruti Suzuki’s popular small cars, alongside Tata Motors and Hyundai.

Industry Welcomes the Move

Lower prices will make cars more affordable for buyers, increase demand, and reduce long-standing classification disputes.

The removal of the cess was also welcomed as a practical decision, giving much-needed support to a sector that contributes significantly to India’s economy.

Read More: GST New Rates: GoM Proposes 18% GST on Premium EV Cars!

Conclusion

The GST rate cut is set to revive the auto industry by making cars more affordable and boosting sales. With rising demand, companies like Maruti Suzuki, Tata Motors, and M&M are expected to benefit the most, helping the sector gain stronger momentum in the coming months.

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