Auto Stocks Surge Ahead of โGST Council Meeting, Defying Sales Concerns
Mumbai, September 1, 2025 – Shares of major Indian automotive companies rose sharplyโ today, withโฃ gains reaching up to 6%, as investors anticipate potential tax reforms from โthe upcoming Goodsโ and services Tax (GST) Council meeting scheduled for September 3-4. The rally occurred despite reported weak August sales figures for several โฃkey โคmanufacturers.
Leading the gains were tata Motors, โฃMaruti โฃSuzuki, and Mahindraโ & Mahindra (M&M), which bucked the trend โof slower sales. Other Nifty Auto constituents including Hero MotoCorp, Eicher Motors, MRF, TVS motor โCompany, Balkrishna Industries, Bharat Forge, and โขAshok Leyland alsoโข experienced increases in share prices, ranging from 3% to 0.8%.
royal Enfield maker Eicher Motors reported a meaningful 55% increase โin August 2025 sales, reaching 1,14,002 units compared to 73,629 unitsโ in August 2024. TVS Motor company also saw robust growth,with monthly sales of 509,536 units,a 30% increase from โ391,588 units in the same month last year.the โขmarket is closely watching the GST Council meeting chaired by Finance Minister Nirmala Sitharaman, with particular attention on potential developments regarding a two-slab taxation regime. Analysts believe that auto โand consumption stocks stand to benefit significantlyโ from โขsuch a reform, contributing โto their strong performance in Augustโ – aโฃ period that was or else lackluster for the broader market.
Nifty โAuto emerged as the best-performing sector in August, delivering index returns ofโฃ 10% overโ the past month.
(Disclaimer: Recommendations, suggestions, views and โขopinions given by the experts โคare their own.These do not โขrepresent the views of Economic Times)
