Brokerages Turn Bullish On Auto Sector: Maruti Suzuki, Hyundai Share Price Jump as GST Cuts Reduce Prices

Auto shares staged a sharp rebound on Friday, with the Nifty Auto index rising nearly 1% in early trade, emerging among the top sectoral gainers.

The rally came after three straight sessions of profit-booking, which followed four days of strong gains triggered by the GST Council’s decision to cut taxes on several vehicle categories.

Maruti Suzuki Share Price Today 
At 12:53 pm, Maruti Suzuki India was trading at ₹15,321.00, up 1.49%, while Hyundai Motor India gained 1.32% to trade at ₹2,540.55.

Brokerage Upgrades Auto Sector, Raises Price Targets
Brokerages have optimism on the auto sector, citing multiple macro triggers supportive of demand.

“A combination of income tax restructuring, interest rate cuts, and the recent GST rate revisions are expected to provide a favourable environment for the automobile industry,” said a brokerage report as per media reports Brokerage
The brokerage raised its price targets for leading automakers:
Maruti Suzuki: ₹17,500 (Top Pick)
Mahindra & Mahindra: ₹4,170
Hyundai Motor India: ₹2,900

“buy” rating on all three counters, suggesting further upside for investors.

GST Cuts Translate to Lower Car Prices
Car buyers have fresh reasons to cheer as GST reductions from September 22 have already started translating into lower showroom prices. Price cuts range from a few thousand rupees on entry-level cars to over ₹1 lakh on premium SUVs and sedans.

The GST cut eases the tax burden on passenger vehicles, covering hatchbacks, sedans, and SUVs. For buyers, this means price reductions ranging from a few thousand rupees on entry-level cars to over Rs 1 lakh on premium models. Dealers report a surge in enquiries, with many prospective customers who had been holding back now moving quickly to close bookings.

Automakers including Tata Motors, Mahindra & Mahindra, Hyundai, Toyota, Renault, Kia, Honda, Škoda, Jeep, Volkswagen and others have passed on the tax benefits, making this an attractive time for new car buyers.

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