Maruti Suzuki, Eicher Motors, Ashok Leyland hit new highs; here's why

Auto stocks in demand following reports of long queues and brisk bookings at auto dealerships on the first day of the GST 2.0 rollout, with leading brands reporting marked spikes in consumer activity.

Auto shares price movement today

 

Shares of automobiles companies were in demand, with the Nifty Auto and BSE Auto index rallying up to 2 per cent in Tuesday’s intra-day trade in an otherwise subdued market.

 

At 09:24 AM; the Nifty Auto (27,616.60) and BSE Auto (61,946.82) indices were up 2 per cent, as compared to 0.06 per cent rise in Nifty 50 and BSE Sensex. In the past one month, auto index has outperformed the market by surging 8 per cent, as against nearly 1 per cent rise in the benchmark indices.

 

Hyundai Motor India, Maruti Suzuki India (MSIL), Ashok Leyland, Mahindra & Mahindra (M&M), Eicher Motors, TVS Motor Company and Tata Motors were up in the range of 2 per cent to 4 per cent in intra-day trade today. Among auto stocks, MSIL, Ashok Leyland and Eicher Motors hit their respective new highs.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why are auto stocks in demand today?

 

According to reports, automotive dealerships witnessed notable queues and brisk bookings on the first day of the GST 2.0 rollout, with leading brands reporting marked spikes in consumer activity. Maruti Suzuki recorded a 50 per cent jump in bookings of small cars, delivering approximately 30k units while Hyundai recorded highest bookings in a day at 11k units as customers hurried to make purchases after price adjustments under the new regime.

 

This booking surge reflects both pent-up demand and strategic consumer response to pricing advantages, amplified by sectoral commentary about continued business momentum. Recently all original equipment manufacturers (OEMs) announced price cuts in the range of 8-10 per cent across their portfolios. Overall, the coordinated GST pass through by all players is likely to trigger a volume driven upcycle in the passenger vehicle (PV) industry, helping sustain momentum in FY26, ICICI Securities said in a note. The brokerage firm’s top picks in this space are MSIL and M&M.

 

The GST rate cut has been implemented from September 22, 2025 and with automotive companies passing on the benefits to the end customer, automobiles in most segments have become cheaper. 

 

Arun Agarwal, VP-Fundamental Research, Kotak Securities believes multiple initiatives by the government, including GST cuts, will drive auto demand. Lower prices are expected to stimulate demand recovery across segments, particularly in mass-market categories. Companies are anticipating a healthy growth in sales in the current festive season. 

Supported by the GST cut and festive season tailwinds, the brokerage firm expects the domestic two-wheelers' wholesale volumes to witness growth as against the flattish trend seen in H1FY26. Similarly, Kotak Securities expects domestic passenger vehicle segment volume growth to accelerate from H2FY26 onwards. Auto ancillary companies having higher exposure towards domestic OEMs stand to benefit from expected rise in automobile demand.

 

Among individual stocks, Eicher Motors hit a new high of ₹7,123.65, gaining 3 per cent on the BSE in intra-day trade. Thus far in the month of September, the stock price of the parent company of Royal Enfield, a global manufacturer of middleweight motorcycles has rallied 17 per cent. 

 

Eicher Motors, on September 9, 2025, announced that the Royal Enfield brand as well as VE Commercial Vehicles (VECV) will pass the full benefit of GST rate reduction to its customers across its motorcycle business, service, apparel and accessories range, following the recent reforms introduced by the GST Council. 

With this move, Royal Enfield’s iconic 350cc range will become more accessible for motorcycling enthusiasts across the country. For more than 350cc range, the prices will change as per the new GST rates. The motorcycles with new pricing will be available to customers starting September 22, 2025.

 

The 350cc segment has been the backbone for the mid-size motorcycle segment and this price reduction further strengthens Royal Enfield’s commitment to making the dream of owning a Royal Enfield a reality for millions of enthusiasts, the company said.