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Auto stocks rallied sharply after several automakers announced price cuts in response to GST Council’s decision to slash taxes on vehicles
Auto Stocks Rally
Auto stocks rallied sharply on September 8 after several automakers announced price cuts in response to the GST Council’s decision to slash taxes on vehicles. The Nifty Auto index jumped 2.5 per cent in morning trade to 26,977, making it the day’s top sectoral gainer.
Bharat Forge and Ashok Leyland Shine
Shares of Bharat Forge climbed around 6 per cent, while Ashok Leyland gained over 4 per cent, leading the rally. Other major auto names also joined the uptrend.
Tata Motors and M&M Announce Steep Price Cuts
Tata Motors rose nearly 3 per cent to Rs 712 apiece after announcing it will fully pass on GST 2.0 benefits across its passenger vehicle portfolio, cutting prices by up to Rs 1.55 lakh from September 22.
Mahindra & Mahindra (M&M) also surged more than 3 per cent to Rs 3,672 apiece. The automaker confirmed it will extend the full GST benefit across its ICE SUV range, including popular models such as Thar, Scorpio, Bolero, XUV700, and Scorpio-N. Buyers can now expect savings of Rs 1.01 lakh to Rs 1.56 lakh, depending on the variant.
Brokerage Upgrades Add to Momentum
Bank of America (BofA) raised its target price for M&M to Rs 4,000 from Rs 3,750, implying a 12 per cent upside, while maintaining a Buy rating. Similarly, Tata Motors, Maruti Suzuki, and two-wheeler makers received fresh upgrades.
Samvardhana Motherson gained nearly 4 per cent, while Bajaj Auto, Hero MotoCorp, and TVS Motor advanced about 3 per cent each. BofA raised its price targets to Rs 9,600 for Bajaj Auto, Rs 3,725 for TVS Motor, and Rs 5,650 for Hero MotoCorp, but retained Neutral ratings.
Maruti Suzuki Outlook
Maruti Suzuki shares rose 1.6 per cent. While no official price cuts have been announced, Chairman RC Bhargava told Financial Express that entry-level models may get steep reductions — Rs 45,000 for Alto and Rs 60,000–70,000 for WagonR.
BofA raised its target price for Maruti to Rs 17,000 from Rs 14,000 with a Buy call, in line with ICICI Securities, which also sees a 14 percent upside. Analysts highlighted that GST cuts, coupled with income tax relief, lower interest rates, and upcoming Pay Commission revisions, could boost demand, particularly in the entry-level segment.
Eicher Motors, Hyundai, and Others
Eicher Motors gained over 2 per cent, with BofA raising its target price to Rs 7,500, implying nearly 14 per cent upside. Hyundai Motor India, though not in the Nifty Auto index, rose nearly 2 per cent, while Bosch and Balkrishna Industries advanced more than 1 per cent each.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 08, 2025, 12:02 IST
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