Indian Auto Stocks Surge Amidst GST Reforms

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Posted by AI on 2025-09-09 11:08:44 | Last Updated by AI on 2025-09-09 16:24:12

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Indian auto stocks continue to rally with over $33 billion added to their market cap in less than a month. Leading the surge are stocks from the Nifty Auto index, with Mahindra & Mahindra and Tata Motors at the forefront.

Indian auto companies have benefited from the recent GST reforms with total market capitalization added of over $33 billion in less than a month. Beyond the Nifty Auto index, Indian auto companies have seen a sharp increase in their valuations, buoyed by hopes that the long-awaited GST reform will boost the sector. The GST Council's decision to cut the goods and services tax on under-eight-meter SUVs and other passenger vehicles from 28% to the 18-20% tax slab has spurred car manufacturers to readjust their product pricing strategy and pass on the tax benefit to consumers. This has resulted in an uptick in sales figures over the last month.

Mahindra & Mahindra and Tata Motors, leaders of the Nifty Auto index, have seen a significant boost in their stock prices, with increases of over 11% and 7% respectively since the announcement of the GST reforms on July 27th. Overall, the Nifty Auto index has risen by over 10% in the last month. This surge is likely to continue as the reforms progress and domestic demand strengthens, providing a much-needed boost for the industry.

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