Auto Stocks Surge as Maruti, Hyundai, Tata Report Bumper Bookings on Navaratri Day 1

Auto stocks rose on Tuesday as carmakers announced strong bookings on the first day of the Navaratri festival, which coincided with the rollout of rationalised Goods and Services Tax (GST) rates.

Shares of Maruti Suzuki hit a 52-week high of ₹16,321 in early trade before coming down a bit at ₹16,089, up 1.78% during intraday trade. The company reportedly delivered nearly 30,000 cars on September 22 and received around 80,000 enquiries.

The NSE Auto Index climbed over 1.5% in early trade before easing to 27,449.55, still up 1.09% compared with Monday’s close. The BSE Auto Index was also higher, gaining 0.94% at 61,227.97.

Among its constituents, Ashok Leyland led with a 2.8% rise, followed by MRF up 1.94% and Maruti Suzuki up 1.78%. Motherson, ARE&M, Eicher Motors and Apollo Tyres gained between 1% and 1.75%, while M&M, Sona Comstar, Uno Minda, Tata Motors and Exide posted modest advances. TVS Motor, Bosch, Bharat Forge and Tube Investments also edged higher.

On the downside, Bajaj Auto slipped slightly, Hyundai declined 0.34%, Hero MotoCorp fell 0.42% and Balkrishna Industries dropped 1.22%.

Under the new GST structure, smaller cars (sub-4 metre models) now fall under the 18% slab, with the compensation cess on automobiles fully removed. Earlier, these models attracted 28% GST plus a 1–3% cess, resulting in a total tax incidence of 29–31%. Larger and luxury cars are now taxed at 40%. Under the earlier GST 1.0 regime, their overall incidence ranged between 43% and 50% (28% GST plus a 15–22% cess).

The GST 2.0 regime has effectively made cars across segments cheaper, with automakers further boosting demand through festive discounts.

“We believe 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 healthy growth in sales this festive season,” said Arun Agarwal, VP – Fundamental Research at Kotak Securities, on September 22. He expects domestic two-wheeler wholesale volumes to grow compared with the flat trend seen in H1FY26.

“Similarly, we expect domestic passenger vehicle segment growth to accelerate from H2FY26 onwards. Auto ancillary companies with higher exposure to domestic OEMs stand to benefit from the expected rise in automobile demand,” Agarwal added.

According to a Moneycontrol report, Hyundai Motor India recorded around 11,000 dealer billings on the first day of Navaratri, its best single-day sales in five years, while Tata delivered nearly 10,000 cars, a company record.

Tata Motors said it received over 25,000 enquiries on Day 1 of Navaratri, calling it a strong start to the festive season.