Nifty Auto Index Up 1%: GST 2.0 Drives Maruti & Hyundai Car Sales Sky-High - Is the Auto Rally Just Beginning?

The Nifty Auto Index saw a strong rally today, rising more than 1% in trading, led by a surge in marquee auto stocks. Shares of Maruti Suzuki, Ashok Leyland, Eicher Motors, Hyundai Motor India, and Samvardhana Motherson International jumped as much as 3%, reflecting renewed investor confidence in the sector.

Maruti Suzuki Reports Exceptional Response to GST 2.0
Maruti Suzuki India Ltd stole the spotlight on the first day of GST 2.0. The company recorded an astounding 80,000 customer inquiries and delivered over 25,000 cars on Tuesday alone.
The company expects deliveries to reach 30,000 soon, with small car bookings surging nearly 50%, translating to around 15,000 daily bookings, about 50% higher than usual.

"The response from customers has been phenomenal--something we haven't seen in the last 35 years. On the very first day, we recorded 80,000 enquiries, and have already delivered over 25,000 cars, with deliveries expected to touch 30,000 shortly. Since September 18, when we announced additional price reduction (over and above GST), we have received 75,000 bookings, with nearly 15,000 bookings coming in every day--about 50% higher than usual. Demand for small cars has been especially strong, with bookings growing by nearly 50%," said Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki as mentioned in the report by ANI.

Hyundai Motor Sees Five-Year High in Dealer Billings
Hyundai Motor India Ltd also experienced a festive surge, achieving its highest single-day dealer performance in five years, with approximately 11,000 dealer billings on Day 1. The company attributed the growth to robust festive sentiment and strong consumer confidence, which analysts say is expected to carry through the season.

Industry Analysts Forecast Strong Passenger Vehicle Growth
According to a report by EMkay, “GST/price cuts turning the tide for PVs; high single-digit growth seen in FY26. After nearly 18-24 months of slowdown, the industry has entered a positive trajectory, with Aug-25 Vahan registrations up 10% YoY in the dealer’s regions.”

The report added that festive sentiment has further lifted momentum, with enquiry levels up 15-20% YoY across segments in September 2025, despite a festive mismatch. EMkay expects passenger vehicle volumes to grow more than 20% YoY over October–December 2025, supported by improved pricing clarity and upcoming festival demand.

Strategic Pricing and New Launches Boost Small-Car Segment
Maruti Suzuki has implemented strategic and targeted price reductions in entry-level hatchbacks, including models like the S-Presso, with cuts up to Rs 1.2 lakh. Current consumer discount schemes continue till September 2025, even for bookings made before 22nd September.

The company also launched the Brezza/Grand Vitara Victoris, which is expected to impact near-term volumes slightly, though initial responses have been positive. “Dispatches have begun in September, with deliveries starting in October, and volumes expected to range between 5,000–7,000 units per month,” EMkay noted.

With ample inventory across dealer networks, the auto industry appears well-prepared to meet festive demand, signaling a robust turnaround in passenger vehicle sales for FY26.
 

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