GST cuts, festive demand lift Indian auto stocks higher

MRF

08/09/2025 10:53

Updates

** Nifty Auto index .NIFTYAUTO rises 3.36%; top sectoral gainer

** Nifty 50 .NSEI up 0.37%

** All but one of NIFTYAUTO's 15 constituents in green; MRF MRF.NS down 0.5%

 ** SUV maker Mahindra and Mahindra MAHM.NS and Tata Motors TAMO.NS rise 4% and 3.7%, respectively, after cutting prices across vehicle portfolios to pass on full benefit of GST cut to customers

** Hero MotoCorp HROM.NS up 2% after naming Harshavardhan Chitale as CEO effective January 5, 2026

** Auto parts maker Samvardhana Motherson SAMD.NS gains 4.2% after plans to grow gross revenue about 4 times to $108 billion over the next five years

** Car sales to customers rose 2.84% y/y in August, per Federation of Automobile Dealers Association

** FADA says sales to consumers expected to rise during festive period due to government's GST cuts

** YTD, NIFTYAUTO's ~19% gain tops NSEI's 4.9% climb

(Reporting by Urvi Dugar)

((UrviManoj.Dugar@thomsonreuters.com;))