GST 2.0 has a tremendous impact... Auto companies' shares soared like rockets; prices rose so much in one go.

Automobile Stocks Today: The government has reduced the GST on automobiles from 28% to 18%. Due to this, the purchase of small cars as well as motorcycles has become cheaper than before due to the reduction in tax.

Automobile Stocks Today:  After the approval of several reforms in the tax system in the GST Council meeting today, September 4, 2025, the shares of automobile companies saw a huge jump today. Due to this rise in the price of shares of automobile companies, the Nifty Auto Index increased by more than 3 percent. The Nifty Auto Index remained around 26,612.20, which is the highest level seen in almost 11 months. 

GST on automobiles was reduced by this much 

During the meeting held on September 3, the GST Council reduced the GST on all small cars from 28% to 18%. This includes petrol, LPG and CNG vehicles with engine capacity up to 1200 cc and less than 4,000 mm in length, and diesel cars with engine capacity up to 1,500 cc and 4,000 mm in length. Due to this change, the ex-showroom prices of many popular models like Maruti Swift, Hyundai i10, Tata Punch, and compact SUVs like Brezza and Venue are also expected to come down by 5-7%. The government has reduced GST on small cars as well as motorcycles. Its effect was seen on the shares of auto companies as soon as the market opened today. 

Shares of these companies rose. 

During today's trading, auto stocks like Mahindra & Mahindra (M&M), Tata Motors, Samvardhana Madrasan, and Maruti Suzuki saw a rise of up to 6 percent. Shares of Mahindra & Mahindra (M&M) reached Rs 3495 with a jump of 6.41 percent.

Similarly, the shares of Eicher Motors rose 2.66 percent to reach Rs 6533.50. Shares of many other auto companies like Samvardhana Madrasan, TVS Motor, Maruti Suzuki are also trading with a gain of 1.5 percent. Shares of Apollo Tyres rose 2.25 percent to reach Rs 496.55. Shares of Uno Minda also rose 2.29 percent to reach Rs 1312.60.  

Shares of Tata and Hyundai also jumped 

During today's trading, Tata Motors shares jumped 1.24 percent to Rs 700.75. Hyundai shares also rose 1.06 percent to reach 2541.30. Bajaj Auto shares also rose 0.89 percent, taking its price to Rs 9197.55. Hero MotoCorp shares also rose 1.29 percent to reach Rs 5418.00. Hero MotoCorp shares also rose 1.29 percent to reach Rs 5418.00. MRF shares rose 1.37 percent to reach Rs 152500.