Tata Motors share price rises 2% amid optimism over GST rate cuts
Tata Motors stock jumped 2 per cent to touch the day’s high of Rs 706.05 on the BSE, over its previous close of Rs 692.15. At 10:41 am, the shares were up 0.48 per cent at Rs 695.50.
- Sep 4, 2025,
- Updated Sep 4, 2025 10:54 AM IST
Shares of Tata Motors rose 2 per cent in Thursday’s trade after the government announced a restructuring of Goods and Services Tax (GST) rates on vehicles and auto components, a move aimed at stimulating demand in the automobile sector.
Tata Motors stock jumped 2 per cent to touch the day’s high of Rs 706.05 on the BSE, over its previous close of Rs 692.15. At 10:41 am, the shares were up 0.48 per cent at Rs 695.50. The counter has climbed nearly 12 per cent in the past six months. The scrip is 29 per cent above its 52-week low of Rs 542.55.
Meanwhile, as part of the changes, the Compensation Cess has been removed, making several categories of vehicles more affordable. The earlier 12 per cent and 28 per cent slabs have been scrapped, while the 5 per cent and 18 per cent rates remain in place. A new 40 per cent slab has also been introduced, applicable to luxury and sin goods.
Under the revised structure, vehicles such as petrol, hybrid, liquefied natural gas (LNG) and compressed natural gas (CNG) cars will attract 18 per cent GST. This applies to petrol cars with engine capacity up to 1,200cc and length under 4 meters, and diesel cars up to 1,500cc engine with the same length limit. Motorcycles with engine capacity up to 350cc, commercial goods transport vehicles, three-wheelers, tractors above 1,800cc, ambulances, buses, auto parts (other than tractors) and tyres also fall under this category.
A lower 5 per cent GST will apply to electric vehicles (EVs), tractors with up to 1,800cc engine capacity, tractor parts, tractor tyres and tubes, bicycles and other cycles, as well as tanks and other armoured fighting vehicles.
The highest slab of 40 per cent has been reserved for premium and high-end vehicles. This includes cars with petrol engines above 1,200cc, diesel engines above 1,500cc or length exceeding 4 meters, motorcycles above 350cc, and other luxury models.
The BSE Auto index surged nearly 1,900 points to hit a day’s high of 59,703.82, led by strong gains in Escorts Kubota, Mahindra & Mahindra (M&M), and Eicher Motors, which rallied up to 14 per cent in early trade.
Shares of Tata Motors rose 2 per cent in Thursday’s trade after the government announced a restructuring of Goods and Services Tax (GST) rates on vehicles and auto components, a move aimed at stimulating demand in the automobile sector.
Tata Motors stock jumped 2 per cent to touch the day’s high of Rs 706.05 on the BSE, over its previous close of Rs 692.15. At 10:41 am, the shares were up 0.48 per cent at Rs 695.50. The counter has climbed nearly 12 per cent in the past six months. The scrip is 29 per cent above its 52-week low of Rs 542.55.
Meanwhile, as part of the changes, the Compensation Cess has been removed, making several categories of vehicles more affordable. The earlier 12 per cent and 28 per cent slabs have been scrapped, while the 5 per cent and 18 per cent rates remain in place. A new 40 per cent slab has also been introduced, applicable to luxury and sin goods.
Under the revised structure, vehicles such as petrol, hybrid, liquefied natural gas (LNG) and compressed natural gas (CNG) cars will attract 18 per cent GST. This applies to petrol cars with engine capacity up to 1,200cc and length under 4 meters, and diesel cars up to 1,500cc engine with the same length limit. Motorcycles with engine capacity up to 350cc, commercial goods transport vehicles, three-wheelers, tractors above 1,800cc, ambulances, buses, auto parts (other than tractors) and tyres also fall under this category.
A lower 5 per cent GST will apply to electric vehicles (EVs), tractors with up to 1,800cc engine capacity, tractor parts, tractor tyres and tubes, bicycles and other cycles, as well as tanks and other armoured fighting vehicles.
The highest slab of 40 per cent has been reserved for premium and high-end vehicles. This includes cars with petrol engines above 1,200cc, diesel engines above 1,500cc or length exceeding 4 meters, motorcycles above 350cc, and other luxury models.
The BSE Auto index surged nearly 1,900 points to hit a day’s high of 59,703.82, led by strong gains in Escorts Kubota, Mahindra & Mahindra (M&M), and Eicher Motors, which rallied up to 14 per cent in early trade.