M&M, Tata Motors, Hyundai India: Auto stocks rally as firms cut prices post GST rate rationalisation

Auto stocks: Shares of auto firms rallied on Monday, September 8, as Hyundai Motor India, Mahindra & Mahindra and Tata Motors slashed prices to pass on the GST rate cut benefit to customers.

"This reform is not only a boost to the automotive industry but also a strong step towards empowering millions of customers by making personal mobility more affordable and accessible," said Hyundai Motor India Managing Director Unsoo Kim.

In a separate statement, Tata Motors said it will pass on the full benefit of the GST reduction on its entire commercial vehicle range to customers, effective September 22, 2025, when the revised rates come into effect.

The Mumbai-based auto major said prices of the CV range would come down in the range of ₹30,000 to ₹4.65 lakh.

The company has already announced a price cut in its passenger vehicle portfolio.

The revised prices for all applicable ICE portfolios are effective from September 6, 2025, and will be transparently updated across dealerships and digital platforms, M&M had said.

At the time of publishing, India’s largest carmaker, Maruti Suzuki, had not officially announced any price cuts.

The price cut follows the announcement of the revamped GST at the 56th GST Council meeting held on September 3, 2025. The GST Council approved limiting slabs to 5% and 18%, effective from September 22.

Auto stocks witnessed a strong rally on Monday with Nifty Auto closing 3.30% higher. Except for MRF (-0.64%), all the stocks settled higher. Bharat Forge (5.81%), Ashok Leyland (5.08%), Samvardhana Motherson International (4.39%), Tata Motors (4.25%), Bajaj Auto (4.08%) and Mahindra & Mahindra (4.01%) were the most contributing stocks on the index.

Further, Tube Investments of India (3.41%), Eicher Motors (3.31%), Exide Industries (3.23%), TVS Motor (3.12%) and Maruti Suzuki (2.42%) also closed higher.

Shares of Hero MotoCorp, Bosch and Balkrishna Industries rose 1.43%, 1.21% and 0.65%, respectively. Meanwhile, Hyundai Motor India shares closed at ₹2,552.80 apiece, climbing 0.44%.

For August, Hyundai Motor India Ltd (HMIL) had reported a 4.23% year-on-year (YoY) decline in total sales to 60,501 units in August 2025, compared to the same month last year. The company had sold 63,175 units in the same month last year.

Its August sales included 44,001 units in the domestic market and 16,500 units in exports, HMIL had said.

Mahindra & Mahindra’s total sales in August had slipped 1% YoY to 75,901 units. The auto major had dispatched 76,755 units to dealers in August 2024.

In the utility vehicles segment, the company sold 39,399 vehicles in the domestic market, a dip of 9% over 43,277 units in the year-ago period.

Meanwhile, Tata Motors’ total wholesales rose 2% YoY to 73,178 units last month as compared with 71,693 units in August 2024.

The company’s total domestic dispatches, however, declined 2% YoY to 68,482 units last month as against 70,006 units in August last year.

Firms like Renault, Toyota and Mercedes India have also announced price reductions for their vehicles.

Renault India on September 6 reduced prices of its vehicles by up to ₹96,395 to pass on the full benefit of the recent GST rate cut to buyers.

The revised pricing will be effective on all deliveries made on or after September 22, 2025, coinciding with the first day of Navratri.

Toyota Kirloskar Motor also slashed prices of its vehicles by up to ₹3.49 lakh.

Luxury car maker Mercedes-Benz India also announced significant price cuts across its vehicle range. Under the new GST 2.0 framework, luxury vehicles are now taxed at a flat 40%, with the earlier 22% compensation cess being scrapped. The German automaker has lowered prices by as much as ₹11 lakh.