New Delhi, Sept. 17 -- Automobile stocks have been on a tear since the Prime Minister's announcement on Independence Day that the government was planning to reduce the rate at which goods were taxed in India. Cars and two-wheelers are among the most prominent and high-value items of discretionary consumption.

The lowering of the goods and services tax (GST) on vehicles has triggered a flurry of price cuts by companies. It has stoked buyer interest and has also come at a time when auto companies needed a push.







Sales growth had been tapering for all segments of auto companies. Four-wheelers saw double-digit growth in sales after covid, driven by a combination of pent-up demand, rising incomes at the top end of the employment pyramid...