**Mumbai: Auto Company Shares Surge on Strong Navratri Sales Amid New GST Rates**
Shares of auto companies witnessed a sharp rise on Tuesday following robust sales reported on the first day of Navratri. The surge in demand is largely attributed to lower vehicle prices under the new Goods and Services Tax (GST) rates, which came into effect on Monday.
**Buyers Rush to Book Vehicles**
Popular carmakers such as Maruti Suzuki and Hyundai Motor India experienced a significant jump in bookings. Customers lined up to purchase their favorite models, motivated by the reduced prices. The lowered tax burden under the revised GST regime has made cars more affordable, resulting in an overall increase in demand.
**Top Auto Stocks See Significant Gains**
Despite a sluggish broader stock market, many auto stocks posted solid gains:
– Hyundai Motor India rose by 4.69 percent
– Maruti Suzuki gained 3.24 percent, reaching a 52-week high
– Mahindra & Mahindra increased by 2.69 percent
– TVS Motor Company climbed 2 percent
– Bajaj Auto advanced 1.91 percent
– Tata Motors went up by 1.68 percent
Additionally, the BSE Auto Index moved up by 0.98 percent to close at 61,253.50 points.
**GST Cuts Drive Consumption Boost**
The new GST rates have lowered prices on 375 items, including cars, televisions, shampoo, and toothpaste. This strategic move aims to stimulate consumer spending and support the economy amidst challenging global conditions.
Experts suggest that the combination of the festive season and reduced prices could sustain the auto sector’s growth trajectory in the coming weeks.
https://www.freepressjournal.in/business/auto-stocks-zoom-on-navratri-start-gst-price-cuts-fuel-sales-surge
