Nifty Auto Open high as Festive Sales and GST 2.0 Spark Investor Optimism, later decline

The Nifty Auto index jumped 1.6% to 27,556 on September 23, 2025, within first half hour of open market, outperforming the broader market as festive season demand and GST 2.0-led price cuts lifted investor sentiment. Shares of leading automakers, including Maruti Suzuki, Hyundai Motor India, and Tata Motors, led the rally, supported by record Navratri sales and strong customer inquiries.

Sector Performance in 2025

The Nifty auto index has already gained 20% this year, far outpacing the Nifty 50’s 5% rise, making it one of the standout performers of 2025. On the day of the rally, auto majors such as Maruti Suzuki, and Eicher Motors rose, while Mahindra & Mahindra, TVS Motor, and Tata Motors trading relatively lower.

Ashok Leyland recorded the strongest gain of nearly 1%, while Eicher Motors advanced nearly 1% each. Analysts say the momentum highlights robust investor confidence in the sector as both festive sentiment and tax reforms align to boost demand.

Key Drivers Behind the Surge

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The rally was fuelled by two main factors: record festive demand at the start of Navratri and the rollout of GST 2.0, which lowered prices of cars, bikes, and scooters across the market. The twin triggers encouraged fresh buying in auto stocks, with investors anticipating sustained sales growth through the festive quarter.

Maruti Suzuki’s Festive Record

Maruti Suzuki reported its best festive start in 35 years, with nearly 80,000 customer inquiries and 30,000 vehicle deliveries on the first day of Navratri. Since September 18, the company has logged 75,000 new bookings, averaging 15,000 per day, which is almost 50% higher than usual demand levels.

Hyundai Motor India’s Strong Start

Hyundai also delivered a solid performance, recording 11,000 dealer billings on Navratri’s opening day, its highest single-day sales in the past five years. The company expects this momentum to continue as festive demand builds further in the coming weeks.

Tata Motors Benefits from GST Boost

Tata Motors sold around 10,000 passenger vehicles on the first day and reported more than 25,000 inquiries at its dealerships. The company noted that lower GST rates helped drive demand, making its cars and SUVs more attractive to customers during the festive season.

Outlook for Auto Stocks

Analysts believe the strong start to the festive season combined with the price advantage from GST 2.0 could help sustain the momentum in auto stocks. With leading manufacturers reporting robust inquiries and deliveries, the Nifty Auto index may continue to outperform in the near term.

Conclusion

Nifty Auto’s sharp rise underlines the impact of festive sentiment and tax reforms on the automobile sector. With Maruti Suzuki, Hyundai, and Tata Motors leading record sales, the festive quarter is shaping up to be one of the strongest in recent years, reinforcing the sector’s growth outlook.