The impact of GST reforms is now visible in the auto sector. Tata Motors has announced a reduction in prices of its passenger vehicles by Rs 65,000 to Rs 1.55 lakh, effective September 22. Due to the reduction in GST rates, Tata's cars like Tiago, Tigor, Altroz, Punch, Nexon, Harrier, and Safari will now become even more affordable.
GST Reform: Automobile buyers are now set to directly benefit from the reduction in GST rates in the country. Tata Motors has announced that it will reduce the prices of its passenger vehicles by Rs 65,000 to Rs 1.55 lakh, effective September 22, 2025. The company stated that the full benefit of the GST reform will be passed on to the customers. This decision will make Tata's popular hatchback, compact SUV, and premium SUV models more accessible across all segments, providing significant benefits, especially to first-time car buyers.
Impact Seen in the Share Market
The decision by the GST Council to reduce tax rates was also reflected in the stock market on Friday. Shares of auto companies saw a surge, and investor confidence increased. On the BSE, shares of Hyundai Motor rose by 2.69 percent, Eicher Motors by 2.43 percent, Mahindra & Mahindra by 2.34 percent, and Ashok Leyland by 2.22 percent.
Shares of the country's largest auto company, Maruti Suzuki, closed with a gain of 1.70 percent, and TVS Motor Company with a rise of 1.28 percent. During this period, the BSE Auto Index climbed by 1.30 percent to reach 58,883.09.
Ajjit Mishra, Senior Vice President (Research) at Religare Broking Limited, stated that sector-wise, auto stocks performed well. Driven by optimism following the reduction in GST rates on vehicles, they saw a surge of over 1 percent.
Performance of Sensex and Nifty
The stock market experienced fluctuations throughout Friday. The Sensex closed down by 7.25 points at 80,710.76, while the NSE Nifty closed higher by 6.70 points at 24,741.
Shares in the oil, gas, and auto sectors saw an upward trend, whereas shares in the IT and FMCG sectors registered a decline.
Tata Motors Reduces Prices
Tata Motors announced on Friday that it will pass on the full benefit of the GST rate reduction to its customers. The company stated that the price of its small car Tiago will be reduced by Rs 75,000. Similarly, the Tigor will become cheaper by Rs 80,000, and the Altroz by up to Rs 1.10 lakh.
The price of the company's compact SUV Punch will see a reduction of Rs 85,000, and the popular Nexon model will be reduced by up to Rs 1.55 lakh. A price cut of Rs 65,000 has also been announced for the mid-size model Curvv.
Premium SUVs Also Become Cheaper
Tata Motors' premium SUVs, Harrier and Safari, will also see significant benefits. The company announced that the price of the Harrier will be reduced by Rs 1.40 lakh, and the Safari by up to Rs 1.45 lakh. According to the company, these reductions will apply to vehicles across all segments, providing relief to buyers in every category.
Company Statement
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles, said that the reduction in GST on passenger vehicles, effective September 22, is a progressive and timely decision. This will make personal transportation even easier and more accessible for millions of people in the country.
He further added that the reduction in tax rates will make the company's popular car and SUV range more affordable across all segments. This will also benefit first-time car buyers and could lead to a surge in sales.
