Shares of automakers like Hyundai, Tata Motors and Mahindra & Mahindra posted gains on Monday on the stock market after they announced significant price reductions across their vehicle portfolios, passing on the benefits of the government’s GST 2.0 reform to customers.
Around noon, Tata Motors witnessed a gain of around 3.07 per cent on the BSE, while Hyundai shares rose by 1.51 per cent. Mahindra’s shares gained as much as 3.45 per cent in the intra-day trade.
On Sunday, Hyundai announced that it has cut prices by up to ₹2.4 lakh across its passenger vehicle range, while Tata Motors slashed prices on its commercial vehicles by as much as ₹4.65 lakh. The revised prices take effect from September 22, aligning with the implementation of the new tax structure. On the other hand, Mahindra & Mahindra slashed its prices by up to ₹1.56 lakh.
The price cuts are expected to stimulate demand across segments, potentially easing the slowdown seen in passenger vehicle sales in recent months.
Tata Motors said it would pass on the full GST benefit across its commercial vehicle lineup, with reductions ranging from ₹30,000 to ₹4.65 lakh. The company had earlier revised prices in its passenger vehicle segment as well.
The GST Council’s rationalisation, announced on September 3, is aimed at making India’s tax structure simpler and reducing consumer costs. Auto is seen as one of the biggest beneficiaries, with potential to revive demand momentum and strengthen the sector’s contribution to GDP.
Investors are likely to track booking trends and retail sales data closely to assess whether the GST-driven price cuts can revive momentum in the slowing PV market.
