NIFTY Auto Index Marks its Best Performance Since Sept 2019; Samvardhana Motherson and Eicher Motors Gain Up To 15%!

The Indian auto sector recorded a remarkable performance in September, with the NSE Nifty Auto index rising 5.9%, marking its best September since 2019. This growth was driven by government GST rate cuts, festive season anticipation, and positive market sentiment. 

GST Cuts Boost NIFTY Auto Index

The government’s decision to reduce GST rates on vehicles played a major role in boosting the sector. The GST on small cars was lowered from 28% to 18%, while the effective tax on large cars and SUVs was brought down to 40% by removing additional levies. These measures are expected to make vehicles more affordable for buyers and encourage higher sales in the coming months.

Top Performers on NIFTY Auto Index in September 2025

Underperformers on the NIFTY Auto Index in September 2025

Valuation and Growth Outlook

Factors Supporting the Growth of NIFTY Auto Index

• Tax relief measures making vehicles more affordable
• Stable fuel prices
• Easier credit availability
• Improving household finances

Automakers are also offering festive discounts and strategically pricing vehicles to attract buyers and capitalise on rising demand.

Read more: RBI Interest Rate Changes Expected Tomorrow: Key Details Explained.

Conclusion

The strong performance of the NIFTY Auto index in September 2025 demonstrates how GST cuts, festive demand, and favourable policies are boosting the Indian auto sector. With supportive government measures and growing consumer interest, the sector is well-positioned for continued growth in the months ahead.

Investors with a Demat account can easily track and invest in these opportunities as the sector continues to grow in the coming months.  

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