Shares of four car and SUV makers rose 0.52% to 1.35% at 9:32 IST on BSE after getting relief from the less than expected hike in cess on cars and SUVs by the GST Council.
Meanwhile, the S&P BSE Sensex was up 179.64 points or 0.57% at 31,867.16.
Ashok Leyland (up 1.35% at Rs 116.60), Maruti Suzuki India (up 055% at Rs 8,016.55) and Tata Motors (up 0.52% at Rs 377) gained.
The Goods and Services Tax (GST) Council at its meeting held on Saturday, 9 September 2017, raised the vehicle cess in the range of 2-7%, which is less than 10% maximum possible hike stated in the ordinance.
The GST Council left untouched the rates on small cars and hybrid vehicles. But mid-sized cars now attract a cess that's 2% higher, larger sedans 5%, and SUVs 7%. Initially, the cess was proposed to be raised by a maximum of 10%.
The revised rates mean a partial reversal of the price benefits buyers initially enjoyed in the immediate aftermath of the GST's July 1 introduction. Still, the total tax incidence on vehicles in the mid-sized, large and SUV categories will be lower by 1.6%, 3.8% and 5.3%, respectively, compared to pre-GST levies, reports suggested.
Mahindra & Mahindra was up 0.8% at Rs 1,305.10. The company announced the launch on e-Alfa mini electric rickshaw for passenger movement on 8 September 2017. A complete 3 wheeler, specifically designed for pollution free last mile connectivity, it boasts of the tough and rugged Mahindra DNA. It is attractively priced at Rs 1.12 lakhs (ex-showroom Delhi). The announcement was made after market hours on Friday, 8 September 2017.
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