Archive · 1 Sep 2025
GST Cut Could Lower Vehicle Prices, Potentially Boost Sales
A financial analysis firm called Jefferies thinks that the Indian government might cut taxes on cars soon.
This could make cars cheaper, maybe by up to 8%.
They believe this will help sell more two-wheelers and small cars.
Car sales haven't been great lately, but this tax cut could make things better.
Jefferies thinks companies like TVS, Mahindra, and Maruti will do well.
They expect the auto market to grow, especially for two-wheelers and small cars.
Jefferies expects a GST cut could reduce vehicle prices by up to 8%.
The GST Council is considering changes to tax slabs.
Two-wheelers and sub-4 meter cars would benefit most from the cut.
Jefferies projects increased sales for two-wheelers and passenger vehicles.
TVS, Mahindra, and Maruti are Jefferies' top stock picks.
- Who
- Jefferies, auto sector, consumers
- What
- Potential GST rate cut impacting vehicle prices and sales
- When
- Expected around festive season
- Where
- India
- Why
- To assess the impact of a potential GST cut on the auto sector
- Potential GST Rate Cut
- 7-10%
- Possible Vehicle Price Reduction
- Up to 8%
- Beneficiary Vehicles
- Two-wheelers, small PVs
- Brokerage
- Jefferies
- Top Stock Picks
- TVS, Mahindra, Maruti
