GST Rate Cut Proposal: The Indian government is on the verge of reducing GST on cars, two-wheelers, three-wheelers, trucks, and buses from the current 28% down to 18%. The new recommendations seek to eliminate the 12% and 28% slabs, retaining only 5% (for essentials and EVs) and 18% for most internal combustion engine (ICE) vehicles. Luxury cars may have a new 40% bracket.
Projected Impact:
According to Nomura, this GST reduction could generate a “multiplier effect” on demand, resulting in a 10–15% increase in auto sales, with Mahindra & Mahindra and Maruti Suzuki positioned to benefit the most. Popular Mahindra models like the Bolero and XUV700 could see immediate price cuts (Bolero by approximately 10%, XUV700 by approximately 7%), thereby improving affordability and volume.
Anticipated margin improvement for OEMs like M&M could be as much as 1–1.5 percentage points if they maintain current discount structures after the tax cut; if the reductions are passed on, consumers benefit directly through price drops.
M&M Stock – GST Cue
GST Impact: The government is set to reduce GST on cars and SUVs from 28% to 18%, likely before Diwali 2025. This policy benefits Mahindra & Mahindra directly by lowering vehicle prices and potentially spurring demand.
Buying Price: M&M is consolidating near ₹3,375–₹3,385. Immediate supports are at ₹3,360 and ₹3,345—ideal zones for accumulation.
Target: With positive tax news and strong technical momentum, short- to medium-term upside targets are ₹3,500, ₹3,600, and possibly ₹4,000, if the uptrend continues
GST cuts are a strong fundamental trigger. Buying near ₹3,360–₹3,385 with a medium-term target of ₹3,500–₹3,600, and a stop loss below ₹3,320, is a favorable trading strategy for M&M amid these cues.
Disclaimer: lnkd.in/gJJDnvn2
Projected Impact:
According to Nomura, this GST reduction could generate a “multiplier effect” on demand, resulting in a 10–15% increase in auto sales, with Mahindra & Mahindra and Maruti Suzuki positioned to benefit the most. Popular Mahindra models like the Bolero and XUV700 could see immediate price cuts (Bolero by approximately 10%, XUV700 by approximately 7%), thereby improving affordability and volume.
Anticipated margin improvement for OEMs like M&M could be as much as 1–1.5 percentage points if they maintain current discount structures after the tax cut; if the reductions are passed on, consumers benefit directly through price drops.
M&M Stock – GST Cue
GST Impact: The government is set to reduce GST on cars and SUVs from 28% to 18%, likely before Diwali 2025. This policy benefits Mahindra & Mahindra directly by lowering vehicle prices and potentially spurring demand.
Buying Price: M&M is consolidating near ₹3,375–₹3,385. Immediate supports are at ₹3,360 and ₹3,345—ideal zones for accumulation.
Target: With positive tax news and strong technical momentum, short- to medium-term upside targets are ₹3,500, ₹3,600, and possibly ₹4,000, if the uptrend continues
GST cuts are a strong fundamental trigger. Buying near ₹3,360–₹3,385 with a medium-term target of ₹3,500–₹3,600, and a stop loss below ₹3,320, is a favorable trading strategy for M&M amid these cues.
Disclaimer: lnkd.in/gJJDnvn2
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.