The implementation of the Goods and Services Tax (GST) on September 22nd spurred a surge in car sales, coinciding with the start of Navratri. Maruti Suzuki alone sold over 30,000 vehicles on the first day of the new tax regime. The reduction in GST not only boosted vehicle sales but also caused a significant rise in the stock prices of major automotive companies.
Maruti Suzuki, Hyundai Motor, Mahindra & Mahindra, and Tata Motors all saw their share values increase. The Nifty Auto Index experienced a notable rise, reaching 2% higher on September 23rd. This followed a closing figure of 27,154.30 on the previous day.
The BSE Auto Index also showed considerable gains. Investors benefited from a return exceeding 5% since the GST announcement. BSE data shows the index climbed from 57,730.86 on September 3rd to 61,946.82 by September 22nd, reflecting an increase of 4,215.96 points. The upward trend continued on September 23rd, with a gain of 1,290.15 points, bringing the index to 61,946.82.
Since the announcement of GST reforms on September 4th, four leading auto companies have yielded substantial returns. Maruti Suzuki shares have risen by 9.38% between September 3rd and September 23rd. Similarly, Mahindra & Mahindra saw a 12.3% increase, and Tata Motors saw a 2.26% rise. Hyundai led in investor returns, with a 13.21% increase in its share value since the GST announcement.
Company September 3rd (Close) Share Price September 23rd Share Price (High) Return
Maruti Suzuki 14921 16321 9.38%
Hundai Motor 2514.70 2846.90 13.21%
Mahindra & Mahindra 3284.55 3680 12.03%
Tata Motors 692.15 707.80 2.26%
With the new GST rates taking effect on September 22nd, car prices dropped. The coinciding start of Navratri created a favorable market for auto companies. Maruti Suzuki reported delivering 30,000 vehicles on the first day. Hyundai Motor also witnessed a strong start, driven by GST 2.0 and the festive season. The company recorded approximately 11,000 dealer billings on the initial day alone, marking the highest single-day figure in the past five years. Tata Motors also achieved significant sales, selling 10,000 vehicles on the first day.