Maruti Suzuki Shares Dip Despite GST Rate Cuts for Auto Sector

Maruti Suzuki India's shares fell 0.98% to ₹14,780 during afternoon trading, defying Optimism from the government's GST rate reductions. The stock opened higher at ₹15,240 before retreating, with trading volumes hitting ₹759.28 crore.

The GST council slashed taxes from 28% to 18% for small cars and motorcycles under 350cc, while auto parts will now attract a uniform 18% rate. Effective September 22, the cuts are projected to lower on-road prices by mid-to-high single digits for two-wheelers and low-to-high single digits for passenger vehicles.

Analysts expect the price reductions to spur demand recovery, particularly in mass-market segments. Domestic-focused auto component players stand to gain from stronger OEM demand, though export-dependent firms will see limited benefits.

The MOVE aligns with broader efforts to stimulate consumption ahead of the festive season, following earlier fiscal measures like income tax cuts and interest rate reductions.