Mumbai: Auto companies shares of went up sharply On Tuesday, after strong sales were reported on the first day of Navratri. The spike in demand was mainly due to lower vehicle prices under the new GST (Goods and Services Tax) rates, which became effective on Monday.
Buyers Rush to Book Vehicles
Popular carmakers like Maruti Suzuki and Hyundai Motor India saw a big increase in bookings. Customers lined up to buy their favorite models, encouraged by reduced prices. Lower taxes under the new GST regime made cars more affordable, which pushed up overall demand.
Top Auto Stocks See Big Gains
Even though the broader stock market was not doing well, most auto stocks saw solid gains:
- Hyundai Motor India rose 4.69 percent
- Maruti Suzuki gained 3.24 percent, also hitting its 52-week high
- Mahindra & Mahindra went up by 2.69 percent
- TVS Motor Company rose 2 percent
- Bajaj Auto advanced 1.91 percent
- Tata Motors climbed 1.68 percent
The BSE Auto Index also moved up by 0.98 percent to 61,253.50.
GST Cuts Drive Consumption Boost
The new GST rates reduced prices on 375 items, including cars, TVs, shampoo, and toothpaste. This move is aimed at increasing consumer spending and supporting the economy during tough global conditions.
Experts say the festive season and lower prices could help the auto sector continue this growth in the coming weeks.
