Maruti, Hyundai shares up 4% today: Here we decode why
What's the story
Stocks of Maruti Suzuki and Hyundai Motor India surged by up to 4% today. The spike came after both automakers reported a massive jump in inquiries and deliveries on the first day of Navratri, which also marked the rollout of GST 2.0. Maruti Suzuki recorded nearly 30,000 car deliveries and received around 80,000 inquiries on Sunday, the best start to Navratri in the last 35 years.
Market response
Maruti received 15,000 bookings daily since September 18
Maruti Suzuki's Senior Executive Officer for Marketing and Sales, Partho Banerjee, said the customer response has been phenomenal. He added that the firm has been receiving nearly 15,000 bookings daily since announcing extra price benefits over GST on September 18. The current bookings are now 50% higher than in the non-festive season. Small cars have been especially popular with dealers working late into the night to deliver cars to customers.
Sales surge
Hyundai records best single-day performance in 5 years
Hyundai Motor India also witnessed a massive sales surge on the first day of Navratri. The company recorded around 11,000 dealer billings, its best single-day performance in five years. Tarun Garg, Whole-Time Director and COO at Hyundai Motor India, said this strong market response is a testament to robust festive sentiment and customer confidence.
Tax changes
GST 2.0 reduces tax on small cars
Under the GST 2.0, smaller cars now fall in the 18% tax slab as opposed to an earlier total rate of 29-31%. Bigger and luxury models now attract a 40% slab, down from the previous rate of 43-50%. Automakers are also offering additional festive benefits to boost sales during this period.