Representative image
| Photo Credit: Reuters
Auto stocks surged on Thursday (September 4, 2025) morning trade, with Mahindra & Mahindra climbing nearly 8%, as small cars and entry-level bikes are set to get cheaper with the GST Council approving a complete overhaul of the tangled Goods and Services Tax regime.
Shares of Mahindra & Mahindra jumped 7.75%, Eicher Motors surged 5.39%, TVS Motor Company climbed 4.20% and Hero MotoCorp went up by 3.56% on the BSE.
The stock of MRF rallied 3.39%, Bajaj Auto edged higher by 2.56%, Apollo Tyres 2.49% and Tata Motors went up by 2%.
The BSE auto index climbed 1.70% to 58,712.10.
In the equity market, the 30-share BSE Sensex jumped 888.96 points to 81,456.67 in opening trade. The 50-share NSE Nifty surged 265.7 points to 24,980.75.
The GST Council approved limiting slabs to 5% and 18% effective from September 22, the first day of Navaratri.
Petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length would move to the 18% rate from the current 28%.
Motorcycles up to 350 cc would be taxed at a lower GST of 18% against 28% currently.
All automobiles above 1,200 cc and longer than 4,000 mm as well as motorcycles above 350 cc and racing cars will be charged with a 40% levy.
Small hybrid cars will also benefit, while EVs will continue to be charged at 5%.
“All the revised GST rates are applicable from 22nd September 25 onwards, the day marked with the first day of the Navaratri festival. This reform aims to simplify the GST rates, ease compliance, create higher disposable income and stimulate long-term economic revival,” according to a report by Axis Securities.
Some of the key sectors that could be key beneficiaries are: insurance, consumer durable, building materials, automobiles, retail, cement, FMCG, and real estate, it added.
Published – September 04, 2025 11:36 am IST
