Auto stocks rally: Hero MotoCorp jumps 8.29%, Maruti Suzuki up 7.28%, TVS Motor rises 6.24% as Government plans GST relief for cars and two-wheelers
As of 9:45 AM, auto stocks were trading with significant momentum: Hero MotoCorp rose 8.29% to ₹5,098.50
Maruti Suzuki jumped 7.28% to ₹13,878.00
Ashok Leyland gained 6.80% to ₹130.25
Hyundai Motor India advanced 6.32% to ₹2,382.30
TVS Motor moved up 6.24% to ₹3,208.70
Bajaj Auto climbed 4.88% to ₹8,614.00
Mahindra & Mahindra (M&M) rose 4.50% to ₹3,412.40
Eicher Motors added 3.83% to ₹5,985.00
Tata Motors gained 2.54% to ₹681.50
The rally comes after Prime Minister Narendra Modi, in his Independence Day speech, hinted at a possible reduction in GST rates for cars, SUVs, and two-wheelers. Currently, small cars attract 28% GST plus a cess of 1–3%, while SUVs are taxed at nearly 50% (including cess). New GST Regime on the Horizon
According to reports, the government plans to introduce a simplified GST structure with two tax slabs: Merit and Standard. The Merit category will feature goods with GST up to 5% .
The Standard category is expected to attract 18% GST.
The government is also considering scrapping the current definition of SUVs for GST classification, which has long been a point of confusion for automakers. Apart from the automobile sector, the proposed GST rejig could also bring relief to consumers of air conditioners and construction materials.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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