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India drops GST on passenger vehicles, auto sector gains $33bn
Big news for car buyers and the auto industry: India just dropped GST on passenger vehicles since the announcement on August 15, 2025.
This tax cut has made cars more affordable right before the festive season rush, and investors are loving it—auto companies added nearly $33 billion in market value over the period since August 15.
Demand for budget-friendly models surges as companies pass savings
The auto sector's BSE index shot up by 12%, easily outpacing other industries.
Mahindra & Mahindra led the way with a 15% gain, while Eicher Motors and TVS Motor Co also saw solid jumps.
Analysts say this is the biggest tax break for cars in a decade, and it's already sparking higher demand—especially for budget-friendly models—as companies pass those savings straight to buyers.