INDIA, 23rd September 2025: Shares of Tata Motors, Maruti Suzuki, and Mahindra & Mahindra extended their rally on the stock market on Tuesday, buoyed by robust Navratri Day 1 sales volumes. Mahindra shares rose nearly 1 percent, Tata Motors gained 0.56 percent, and Maruti Suzuki advanced 1.87 percent, as investors responded to surging festive demand and the tailwind from GST 2.0-driven price reductions.
Maruti Suzuki led the day with over 25,000 deliveries and 89,000 inquiries. Company executives called the response “phenomenal, something not seen in the last 35 years.” Demand for small cars jumped nearly 50% following GST-related price cuts, while daily bookings have risen to 15,000, about half as much again as usual. Since mid-September, when the additional price reduction was announced, Maruti has logged more than 75,000 bookings.
The upbeat mood was mirrored across other players. Tata Motors reported 10,000 deliveries and over 25,000 inquiries on Day 1, with dealers noting sharper walk-ins, higher conversions, and showrooms staying open late to meet demand. Hyundai Motor India matched the momentum, with COO Tarun Garg noting 11,000 dealer billings on Day 1.
The company’s highest single-day wholesale in five years. “The auspicious start of Navratri and the impact of GST 2.0 reforms have boosted consumer confidence,” Garg said, adding that the company expects strong festive demand to continue.
Price cuts have played a decisive role in attracting buyers back to showrooms. Maruti’s entry-level S-Presso has become its most affordable model after a ₹1.29 lakh reduction.
Mahindra’s Bolero range is cheaper by up to ₹2.56 lakh, while prices of the Tata Punch and Kia Seltos have fallen by as much as ₹1.6 lakh. Analysts believe such cuts give leaders like Maruti and Hyundai a chance to woo two-wheeler riders into their first cars, expanding the entry-level pool of buyers.
The festive boost carried into the markets, with shares of Maruti rising 3.24%, Hyundai jumping 4.69%, Tata Motors edging up 1.68%, and Mahindra & Mahindra gaining 2.69%.
Two-wheeler makers also joined the rally, as TVS Motor rose 2% and Bajaj Auto advanced 1.91%. Brokerage firm Nomura maintained a “buy” rating on Hyundai, with a target price of ₹2,846 per share, citing strong festive demand and price momentum.
Industry forecasts are being revised upward. Analysts now project auto sales growth at 8.5% for FY26, nearly double the earlier 4.1%. “With the auspicious start of Navratri today, we expect record retail activity,” a senior Tata Motors executive said. FADA President C. S. Vigneshwar added that GST cuts will continue to benefit the industry well beyond this season.
Digital platforms are also riding the wave. Cars24 reported a 400% increase in deliveries on Navratri Day 1, led by Delhi-NCR, followed by Ahmedabad, Bengaluru, Pune, and Mumbai. The platform also saw over 5,000 car inspections in a single day, the highest in four years. Honda Cars India has joined the rush, revising prices across its lineup and rolling out limited-time offers until December.
Rajesh Menon, Director General of SIAM, said the tax reform would strengthen domestic value addition and inject renewed momentum into the sector. With GST-driven price cuts dovetailing with festive sentiment, automakers are bracing for what could be their strongest sales season in years — and investors are already placing their bets.
