Nifty Auto index surges 1.5% — Ashok Leyland, Maruti Suzuki, Eicher top gainers. What's behind the rally? Explained
Ashok Leyland share price gained the most, was up 2.75 per cent on Tuesday. Meanwhile, Maruti Suzuki and Eicher Motor shares surged nearly 2 per cent each.
The Nifty Auto index saw a strong rally in Tuesday's trading session, as it rose as much as 1.6 per cent to 27,556. Auto stocks like Maruti Suzuki, Ashok Leyland, and Eicher Motors were trading higher by up to 3 per cent, indicating renewed investor confidence in the sector.
The Nifty Auto index has seen a sharp rally this year and outperformed the Nifty 50 index, with 20% gains in 2025 so far, as against a 5% rise in the benchmark index.
Ashok Leyland share price gained the most and was up 2.75 per cent on Tuesday in the early afternoon trade. Meanwhile, Maruti Suzuki and Eicher Motors shares gained nearly 2% each.
Other auto OEMs like Mahindra & Mahindra, TVS Motors and Tata Motors were also trading in the green
What's behind the rally in auto stocks?
The auto stocks witnessed a significant rally after the companies reported a sharp rise in inquiries and deliveries on the opening day of Navratri, which also marked the launch of GST 2.0 on September 22.
New lower GST rates kicked in from Monday, resulting in a slashing of prices for cars, bikes and scooters.
Maruti Suzuki
Maruti Suzuki announced that it recorded close to 80,000 customer inquiries and delivered about 30,000 vehicles on Sunday, marking its strongest Navratri opening in 35 years.
Since September 18, following the company’s additional price cuts beyond the GST revision, it has secured 75,000 bookings — averaging nearly 15,000 orders daily, which is around 50% higher than normal levels.
Hyundai Motor India
Hyundai Motor registered a robust opening, fueled by GST 2.0 and festive demand. On the very first day, the company logged around 11,000 dealer billings — its highest single-day figure in five years, according to Tarun Garg, whole-time director and COO. He further noted that Hyundai anticipates this positive momentum to carry forward throughout the festive season.
Tata Motors
Tata Motors said its dealers retailed around 10,000 passenger vehicles on the first day of Navratri amid a drop in vehicle prices due to a revamped GST regime.
The Mumbai-based auto major also recorded over 25,000 customer enquiries at its passenger vehicle dealerships across the country.
(With inputs from agencies)
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