M&M shares gain 4% on GST rejig hopes; Vision 2027 SUV strategy adds tailwind

M&M shares have risen over 12 percent since the beginning of the year.

Automobile giant Mahindra & Mahindra (M&M) rose as much as 5 percent to Rs 3,432 on Monday, August 18, after reports suggested the government is considering a major overhaul of GST rates on entry-level two-wheelers, compact cars and hybrid vehicles. As a result, the Nifty Auto index rallied as much as 4 percent.

The buzz follows Prime Minister Narendra Modi’s Independence Day pitch for a simplified two-slab GST structure, expected to be rolled out by Diwali. According to a CNBC TV-18 report, policymakers are weighing a uniform 18 percent GST on mass-market vehicles, which would mark a steep cut from the current 28–31 percent levies that vary with engine size, length and ground clearance. Luxury cars and SUVs, however, are likely to remain in the highest bracket of around 40 percent.

Follow our LIVE blog for all the latest market updates

If implemented, the rejig could significantly reduce ownership costs for middle-class buyers while unlocking fresh demand across the auto sector. Analysts also expect the benefits to ripple through the supply chain, aiding component makers as well. Brokerages flagged M&M among the key winners in passenger vehicles under the new regime.

Separately, Mahindra & Mahindra grabbed attention with the unveiling of its Global Vision 2027 roadmap. At the core is NU_IQ, a new modular multi-energy SUV platform designed to underpin the company’s global SUV strategy. The auto major also showcased four concept SUVs — Vision S, Vision T, Vision SXT and Vision X — slated to hit production lines from 2027. Nomura, which reiterated its “buy” call with a target price of Rs 3,736 per share, said it is maintaining its FY26/27 revenue and margin forecasts at 13.7 percent and 14.4 percent, respectively.

At about 3:15 pm, shares of the company were trading at Rs 3,383, higher by 3.6 percent from the last close on the NSE. M&M shares have risen over 12 percent since the beginning of the year.