M&M Share Price Up Nearly 4 Per Cent, Nifty Auto Extends Four Session Rally - Know What’s Driving The Gains

Automotive stocks extended gains on September 8, 2025, as shares of major domestic vehicle manufacturers rallied. The shares of M&M (Mahindra & Mahindra) surged nearly 4 per cent to an early high of Rs 3,681.90 apiece on the NSE.

The Nifty Auto index also extended gains for the fourth straight session. The gains came as several major automotive companies announced revised prices for their vehicles following the restructuring of the Goods and Services Tax (GST) slabs.

Why Are Auto Stocks Gaining

Bharat Forge, Ashok Leyland and Tata Motors led the gainers among Nifty auto stocks in early trade, as they traded higher by 5.73 per cent, 4.73 per cent, and 3.18 per cent, respectively.

Shares of major Nifty Auto constituents, such as Mahindra & Mahindra traded higher by 2.32 per cent at the time of writing. Other major constituents, such as Maruti Suzuki India also traded higher by 1.07 per cent. Shares of Bajaj Auto also traded higher by 2.29 per cent. The surge in automotive stocks has contributed to a four-session rally for the Nifty Auto index. The Nifty Auto index has surged over 5 per cent in the four session rally.

The stocks gained amid announcements by multiple automotive manufacturers regarding price reductions across model line-ups. The price reduction follows the GST Council’s decision to revise the tax structure.

On September 3, 2025, the GST Council approved the imposition of 18 per cent GST on smaller cars—with an engine capacity of up to 1,200 cc for petrol and 1,500cc for diesel, and a length not exceeding four metres. Notably, this is a significant reduction of nearly 10 per cent in GST. On the other hand the GST on larger cars has been kept at 40 per cent and the cess has also been removed.

Carmakers, such as Mahindra & Mahindra have passed on the benefit of the rate cut to car buyers and have announced price cuts across their entire internal combustion engine SUV line-up. The carmaker has announced a price reduction ranging between Rs 1.01 lakh and Rs 1.56 lakh for models, such as Thar, Scorpio Classic, XUV3XO, Scorpio-N and XUV 700.

Tata Motors has also announced a comprehensive price cut across its passenger vehicle portfolio. The discounts offered by the company range between Rs 75,000 and Rs 1.45 lakh for popular models, such as Tiago, Tigor, Altroz and other SUV models, such as Harrier and Safari.

Other carmakers such as Renault, Toyota and Hyundai have also announced revised rates for their line-ups. Shares of Hyundai Motors India traded higher by over 1 per cent at Rs 2,583.9 apiece on the NSE at the time of writing the story.

Notably, the new prices will come into effect from September 22. The revised prices are expected to provide a much-needed boost to vehicle sales corresponding with the onset of the festive season. This boost in sales can lead to higher earnings for select automotive companies. The potential for improved earnings and demand revival has also boosted investor sentiment.