The implementation of GST on September 22nd resulted in a significant increase in car sales, aligning with the commencement of Navratri. Maruti Suzuki reported sales of over 30,000 vehicles in a single day. This sales boost, driven by reduced GST rates, also translated into higher share prices for major automotive companies.
Maruti Suzuki, Hyundai Motor, Mahindra & Mahindra, and Tata Motors all experienced increases in their stock values. The Nifty Auto Index saw a 2% increase on September 23rd, following a closing value of 27,154.30 the previous day.
The BSE Auto Index also performed well. Investors realized returns exceeding 5% following the GST announcement. BSE data indicates the index rose from 57,730.86 on September 3rd to 61,946.82 by September 22nd, an increase of 4,215.96 points. The upward trend continued on September 23rd, with a gain of 1,290.15 points, reaching 61,946.82.
Since the GST reform announcement on September 4th, key auto companies have seen substantial returns. Maruti Suzuki shares rose by 9.38% from September 3rd to September 23rd. Mahindra & Mahindra shares increased by 12.3%, while Tata Motors shares gained 2.26%. Hyundai led in investor returns, with its share value increasing by 13.21% following 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%
The introduction of new GST rates on September 22nd led to lower car prices. The coinciding start of Navratri created a favorable environment for the automotive sector. Maruti reported delivering 30,000 vehicles on the first day. Hyundai Motor also experienced a strong start due to GST 2.0 and the festive season. The company recorded approximately 11,000 dealer billings on the first day, which was the highest single-day figure in the past five years. Tata Motors also sold 10,000 vehicles on the first day.