Hyundai Motor Share Price Surges 10% on GST Reform Buzz

Market Performance

Hyundai Motor India shares witnessed their biggest single-day jump since listing, rising 10% to ₹2,464 apiece in Monday’s session.

This marks a fresh all-time high for the stock, which made its debut on the Indian exchanges in October 2024. At current levels, the stock trades 26% above its IPO price of ₹1,960.

Main News

The rally came after reports suggested that the government may cut GST on automobiles from 28% to 18% under the new “GST Reforms 2.0.”

Such a move could:

• Reduce car prices for consumers
  
  
• Support domestic demand
  
  
• Provide relief to automakers facing sluggish urban consumption
  
  

The proposed tax changes are expected to be discussed in the GST Council meeting in Q3 FY26.

Company Details

Hyundai Motor India has been expanding exports to offset weak domestic demand. However, exports faced a setback recently after the US imposed a 50% tariff on Indian auto shipments.

The potential GST cut comes as a timely boost, especially with the festive season approaching, a period critical for passenger vehicle sales.

The government’s reform plan aims to rationalize the GST structure from the current four slabs to two slabs, making pricing more competitive and stimulating consumption across sectors.