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Informist, Friday, Sep 19, 2025

MUMBAI - Shares of automobile companies are likely to see muted movement next week in the absence of major triggers after the recent surge following the government's goods and services tax reforms, which will take effect Monday. While many analysts wait to see the festival season trends to get clarity about the impact of the tax reforms, some say there are chances of re-ratings for the sector.

This will be supported by better earnings growth, the Reserve Bank of India's interest rate cuts, a good monsoon, income tax relief announced during the Union Budget, and pick-up in rural demand. While many automotive players have announced price cuts following the GST announcement, analysts expect discounts to moderate, resulting in improved margins in the upcoming quarters. HSBC Global Investment Research expects the passenger vehicle industry in India to grow in double digits on year during the festive season, much faster than the single-digit growth seen before the GST announcement.

Mahindra & Mahindra is the only company to have passed on the entire GST reduction to consumers immediately from Sept. 6, which was a smart move as many of its models carry a cess of 15-22%, Motilal Oswal Financial Services said in its report Wednesday. "Given that cess can only be compensated with cess, MM (Mahindra & Mahindra) has chosen to lose 10% by reducing vehicle prices upfront by 10%...," the broking firm said. This way, the company can get input tax credit for cess until Monday instead of losing the 15-22% of cess credit on unsold inventory after the rejig comes into effect, it said.

TOP HEADLINES
* Affordability issue won't affect sales after GST rejig, says Maruti Suzuki
* Maruti Suzuki lowers prices by up to INR 129,600; biggest cuts on small cars
* Tata Motors Altroz first in hatchback segment to get 5-star safety rating
* Escorts Kubota launches new combine harvester in Punjab, Haryana
* Hyundai Motor to increase salary of employees by INR 31,000/month over 3 yrs
* TVS Motor launches EV-smartwatch integration for TVS iQube with Noise
* Response to battery-as-a-service has been lukewarm, says Ather Energy's Jain
* Ola Electric touches output of 1 mln units from Tamil Nadu plant  in 4 yrs
* PRESS: Automobile dealers step up stocking to meet GST rejig-led demand
* Maruti Suzuki Victoris introductory price INR 1.05 mln, sales start Sept 22
* IPO Alert: Hero Motors gets SEBI nod for public issue of up to INR 12 bln
* Tata Motors signs MoU with 13 cos to set up 25,000 charging stations in a yr
* Eicher launches variants of Royal Enfield Meteor 350, starting INR 195,762
* Data Alert: Aug PV sales down as cos cut despatches, 2-wheelers shine - SIAM
* TVS Motor signs MoU with ALT Mobility to lease 3,000 electric 3-wheelers
* Data alert: Aug PV despatches dn on calibration, 2-wheelers shine, says SIAM
* Isobutanol-diesel blending study result likely in up to 18 mos: Auto R&D body
* Maruti Suzuki rerouting China rare earths via south Asia to maintain output
* Gadkari urges auto cos to give discount to buyers with scrapping certificate

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anjana Therese Antony
Edited by Rajeev Pai

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