Shares of tyre maker MRF Ltd rose over 2% on September 23 to hit fresh record high on auto demand surge.
Auto dealers saw increased footfalls as buyers thronged dealerships in large numbers on September 22 to buy vehicles with lower price tags under the new GST regime, said Federation of Automobile Dealers Association (FADA) President C S Vigneshwar.
Increased vehicle demand is positive for tyre manufacturers like MRF and its rivals CEAT and JK Tyre, which were trading 0.3% and 0.7% higher, respectively.
At 3:25 pm on September 23, MRF shares were trading 2% higher at Rs 1.56 lakh apiece.
Separately, MRF Ltd on September 23 said some of its employees at the manufacturing plant at Tiruvottiyur, Chennai, have gone on strike with regard to payment of annual insurance premium as advance and also opposing the hiring of trainees under the National Apprentice Promotion Scheme, Prime Minister Internship Scheme, and the Naan Mudhalvan Scheme. The company in its exchange filing termed the ongoing protest an "illegal strike".
"The operations of the factory are being partly continued with the help of the workmen who are not part of the strike. The company is taking necessary steps to restore normalcy at the earliest," the exchange filing said. According to media reports, the company's employees began the strike on September 22.
Auto index gains
The auto index jumped up to 1% to hit a record high, following reports of strong footfalls across dealerships on September 22, the first day of Navratri, which coincided with the Goods and Services Tax (GST) cuts kicking in.
Three of the top five gains on the Nifty 50 were all auto companies. India's largest automaker, Maruti Suzuki India, topped the list with a 2.2% rise, hitting a lifetime high.
Mahindra & Mahindra rose 1% and Eicher Motors added 1.4%.
Auto firms passing the GST cuts on to customers is likely to increase volumes in the passenger vehicle industry, helping sustain momentum in fiscal 2026, said ICICI Securities, reported Reuters.
In 2025 so far, MRF shares rose 17% while Nifty Auto clocked 20% gains in the same period. CEAT and JK Tyre shares rose 7% and 3%, respectively, in 2025 so far.
Meanwhile, shares of Cartrade Tech rose up to 4% on September 23 as it said traffic at its platforms, CarWale and BikeWale, rose 74% to their highest ever single-day traffic on September 22.
The company said spike in traffic highlights combined impact of festive season demand and tax rate cut, which enhanced affordability and lifted consumer sentiment across automobile sector.
The stock rose over 60% in 2025 so far.
With inputs from Reuters
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