Auto Stocks Surge: Maruti, Ashok Leyland, Hero MotoCorp Dominate Market on GST Hopes
Auto Stocks Ignite Market with Hopes of GST Reforms
Mondays usually aren't this wild, but August 18, 2025, busted all norms for the Indian auto sector. Investors poured money into auto stocks, sending the Nifty Auto index soaring by more than 4%. The big trigger? Prime Minister Narendra Modi's Independence Day speech stirred up real buzz, hinting at fresh GST reforms coming by Diwali. Suddenly, the market saw a real shot at the GST on vehicles getting slashed from 28% to 18%. That would mean a thinner tax bill and fatter sales for automakers.
Packed with cash and big hopes, investors turned their focus to heavyweights like Maruti Suzuki India. Maruti didn’t just inch up – it rocketed ahead, closing at ₹14,125. That 9% jump marked Maruti’s best single-day performance in five long years. It’s not just hype, either. Names like Morgan Stanley and Nomura specifically called out Maruti as a winner if the government actually lowers GST. Cheaper cars mean more buyers, and Maruti’s massive dealer network could capitalize on that right away.
Record Gains Across the Board: Ashok Leyland, Hero MotoCorp, TVS, Hyundai
Maruti wasn’t alone on the ride. Ashok Leyland locked in a striking 8% gain, setting a fresh record. For a company used to steady growth, this was its biggest single-day surge since February 2021. Ashok Leyland is riding not just the GST optimism; the company's top brass came out swinging during the latest earnings call, projecting confidence and getting strong support from top brokerages who expect further upside if tax pain eases.
Meanwhile, Hero MotoCorp shot past ₹5,000 for the first time ever, gaining 9% and closing Monday's session at ₹5,110.55. For the two-wheeler segment, rumors of a cheaper GST regime couldn’t come at a better time. TVS Motor joined the party too, up 6.8% to ₹3,226.8, reflecting traders' appetite for well-run two-wheeler makers primed for a demand boost.
Even Hyundai Motor India, still the new kid in the public market scene, flexed its muscles with a 4.07% gain. The rally wasn’t just a random pop — it was sector wide, with nearly every big auto name clocking fresh highs. Of course, this wasn’t just about GST. Extra tailwinds included an S&P Global rating boost for India and some strong cues from global markets. Both the BSE Sensex and NSE Nifty posted more than 1.3% gains, so the mood everywhere was upbeat.
Investors now face a wait-and-watch game. All eyes are peeled for actual announcements about GST rates from the government. If the promised reforms do land before Diwali, the auto sector could see a major shakeup, with ripple effects through suppliers, dealers, and even buyers who’ve been sitting on the fence. Until then, the action and speculation will keep these auto stocks right at the market’s center stage.