The Indian auto sector kicked off the festive season with a bang on Navratri Day 1, as shares of Maruti Suzuki, Hyundai Motor, and Eicher Motors rallied up to 5%. The surge comes amid strong retail bookings, upbeat dealer sentiment, and early benefits from the GST2.0 framework, which streamlines input credit and lowers compliance costs for auto OEMs.
Auto Stock Performance – Sep 23, 2025
The Nifty Auto index rose 2.8%, outperforming broader benchmarks.
What’s Driving the Rally?
1. Festive Demand Spike
Navratri Day 1 saw a 15–18% jump in showroom footfall across major cities, with strong pre-bookings for entry-level hatchbacks and mid-range SUVs.
2. GST2.0 Implementation
The new GST framework simplifies input tax credit for auto components and reduces cascading taxes, improving margins for manufacturers.
3. Dealer Incentives & Financing
Aggressive festive schemes, zero-down payment offers, and extended warranties have boosted consumer sentiment.
4. Rural & Semi-Urban Push
Improved monsoon and agri-income have revived demand in Tier-2 and Tier-3 towns, especially for two-wheelers and compact SUVs.
What This Means for Investors
- Short-term momentum in auto stocks may continue through Navratri and Diwali
- GST2.0 benefits could reflect in Q3 earnings, especially for component-heavy OEMs
- EV and hybrid models may see higher traction as festive launches roll out
- Watch for delivery timelines and inventory data to gauge sustainability
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Final Takeaway
The combination of festive demand, GST2.0 reforms, and consumer-friendly schemes has ignited a rally in India’s auto stocks. With Maruti Suzuki, Hyundai, and Eicher Motors leading the charge, the sector looks poised for a strong Q3—provided momentum sustains through the festive calendar.