The introduction of GST on September 22nd, coinciding with the first day of Navratri, led to a surge in car sales. Maruti Suzuki sold more than 30,000 vehicles in a single day. This sales increase, spurred by the GST reduction, also triggered a rise in the stock prices of prominent auto manufacturers.
Maruti Suzuki, Hyundai Motor, Mahindra & Mahindra, and Tata Motors experienced gains in their share values. The Nifty Auto Index reflected this positive trend, climbing 2% higher on September 23rd, after closing the previous day at 27,154.30.
The BSE Auto Index also showed strong performance. Investors saw returns exceeding 5% since the GST announcement. BSE data indicated an increase from 57,730.86 on September 3rd to 61,946.82 by September 22nd, a rise of 4,215.96 points. The upward momentum continued on September 23rd, with an additional 1,290.15-point increase, reaching 61,946.82.
Since the announcement of GST reforms on September 4th, major auto companies have provided impressive returns. Maruti Suzuki shares increased by 9.38% from September 3rd to September 23rd. Mahindra & Mahindra shares saw a 12.3% increase, while Tata Motors shares rose by 2.26%. Hyundai led the pack in terms of investor gains, with its share value increasing by 13.21% since 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%
With the implementation of new GST rates on September 22nd, vehicle prices decreased. The coinciding start of Navratri contributed to a favorable market for the automotive sector. Maruti Suzuki reported delivering 30,000 vehicles on the initial day. Hyundai Motor also experienced a strong beginning, boosted by GST 2.0 and the festive period. The company recorded around 11,000 dealer billings on the first day, the highest single-day number in the past five years. Tata Motors also achieved sales of 10,000 vehicles on the first day.