H1: Maruti Suzuki Share Price Soars as GST Cut Proposal Boosts Market
Maruti Suzuki’s stock jumped over 8% after the Indian government proposed slashing GST on small cars from 28% to 18%, sparking hope of renewed auto demand. Furthermore, the rally drove the auto index to a 10-month high.
Live Stock Performance & Key Numbers
- Current Price: Around ₹12,840 on NSE.
- 52-Week Range: ₹10,725 (low) to ₹13,540 (high).
- Market Cap: Approximately ₹3.96 lakh crore.
- Analyst Targets: Average target ₹13,847; high ₹15,790; low ₹11,300.
Investor Sentiment:
- 75% of Moneycontrol users recommend buying.
- Strong “Buy” rating by 32 out of 39 analysts.
Why the Market Is Rallying
- The GST cut proposal is expected to boost affordability, especially ahead of Diwali. Auto stocks, including Maruti, surged by 8%, leading sector gains.
- Analysts say the tax reform may fuel festive season demand and help revive flagging small-car segments.
Sales Trends & Sector Outlook
- Domestic Sales Decline: June saw a 13% YoY drop in passenger vehicle sales—peaking mini-car sales hit severely.
- Market Share Impact: Small cars account for roughly half of Maruti’s sales; declining volumes have pressured margins.
- Revival Hopes: Maruti expects revival of small-car segment by late 2026 or 2027.
Analyst View & Market Sentiment
- Positive Momentum: The GST cut proposal is seen as a strong demand catalyst, with analysts noting its benefit to margins and volumes.
- Target Revisions: Brokers like Motilal Oswal highlight Maruti Suzuki as a key beneficiary in auto sector.
Quick Fact
Maruti Suzuki shares surged ~8% on August 18, 2025, as markets reacted to proposed GST cut on small cars—auto index hit 10-month highs.
