New Delhi, Sept. 10 -- The Nifty Auto index has rallied more than 12 per cent since August 18, driven by optimism around next-generation GST reforms. The government cut the GST to 18% on most passenger vehicle categories, from as high as 31%, making cars and bikes more affordable ahead of the festive season, driving hopes of a pick-up in demand.

Over the past one year, the Nifty Auto index has risen 6 per cent, outperforming the Nifty 50, which fell 0.13 per cent in the same period. In 2025 so far, the auto index is up 19 per cent compared to a 5.7 per cent rise in the Nifty 50.

The reform comes at a crucial juncture for the auto industry. Two-wheeler domestic sales rose 9 per cent year-on-year to 19.61 million units in FY25, slightly b...