Mumbai, September 4 (Kiran News): Shares of automobile companies gained on Thursday after the GST Council announced major tax relief for the sector, reducing rates from 28% to 18% across multiple categories.
Under the new slabs, GST has been cut to 18% on small cars, bikes up to 350cc, and three-wheelers. The tax on buses, trucks, and ambulances has also been lowered from 28% to 18%. Additionally, all auto parts will now attract a uniform GST rate of 18%, irrespective of their HS code.
Following the announcement, leading auto stocks surged on the BSE.
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Mahindra & Mahindra rose 5.81% to ₹3,475.50, up by ₹190.95 from its previous close of ₹3,284.55. The stock opened at ₹3,526.95 and touched a high of ₹3,539.25 and a low of ₹3,471.10.
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Eicher Motors gained 1.82% to ₹6,480.00, rising by ₹115.75 from its previous close of ₹6,364.25. The scrip opened at ₹6,665.05 and moved between a high of ₹6,707.70 and a low of ₹6,473.00.
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Hero MotoCorp was up 0.47% at ₹5,373.85, adding ₹25.05 from its last close of ₹5,348.80. The stock opened at ₹5,539.60 and recorded a high of ₹5,539.60 and a low of ₹5,371.60.
The tax cuts are expected to provide a significant boost to vehicle demand and bring relief to both automakers and consumers.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.