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Below the GST implementation quote on Auto Sector by Arun Agarwal, VP-Fundamental Research, Kotak Securities

“The GST rate cut has been implemented from 22^nd Sep 2025 and with automotive companies passing on the benefits to the end customer, automobiles in most segments has become cheaper. We believe multiple initiatives by the government, including GST cuts, will drive auto demand. Lower prices are expected to stimulate demand recovery across segments, particularly in mass-market categories. Companies are anticipating a healthy growth in sales in the current festive season.  Supported by the GST cut and festive season tailwinds, we expect the domestic two-wheelers wholesale volumes to witness growth as against flattish trend seen in H1FY26. Similarly, we expect domestic passenger vehicle segment volume growth to accelerate from H2FY26 onwards. Auto ancillary companies having higher exposure towards domestic OEMs stands to benefit from expected rise in automobile demand.”

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