Maruti Suzuki Share Price: Stock Races 9% To 52-Week High As GST Cuts Cheer Small Car Buyers

hares of Maruti Suzuki India Ltd. (MSIL) surged over 9% on Monday, hitting an intra-day high of Rs 14,125 on the National Stock Exchange (NSE), as investors cheered the government’s proposed overhaul of the Goods and Services Tax (GST) regime. The share price was also 52-day high today.  The stock closed the previous session at Rs 12,936, and was last trading at Rs 14,045, up 8.58%.

Furthermore, shares of leading automobile makers, including Hero MotoCorp, Maruti Suzuki India, Ashok Leyland, TVS Motor, and Bajaj Auto, surged between 5-8% in early trade on Monday, buoyed by expectations that the Goods and Services Tax (GST) on vehicles.

The rally lifted the Nifty Auto Index by over 4% on August 18, 2025, which opened at 24,804.65, up 2.8% from its previous close of 24,118.80, before touching an intraday high of 25,118.85.

The sharp rally came on the back of reports that the Centre is planning to rationalise GST rates, with small cars set to be the biggest beneficiaries. According to sources, the government is considering lowering the GST on small petrol and diesel cars to 18% from the current 28%, along with a reduction in cess. Larger cars, SUVs, and luxury vehicles, however, are likely to be placed under a new 40% special tax bracket once the 28% slab is scrapped.

Auto Industry analysts believe that the proposed changes could give a much-needed push to the automobile sector, which has been grappling with cost pressures and demand fluctuations. “Lower taxes on small cars would make them more affordable to middle-class buyers, potentially driving up sales volumes,” stated Puneet Gupta, Director, S&P Global Automotive.