Eicher Motors Rallies Over 5%, Hits Record High on GST Rate Cut Optimism

New Delhi, 4 September 2025: Shares of Eicher Motors Ltd surged 5.36% in early trade today, hitting a fresh 52-week high at ₹6,713.00 so far. The rally in the share price of the company came after the GST council made an announcement of rate rationalisation, especially for the two-wheelers and auto components.

Eicher Motors Hits ₹6,474.50, Trades 7.24 Lakh Shares Worth ₹475 Cr

As of September 04, 2025, 11:50 AM, Eicher Motors Limited stands at ₹6,474.50, marking a gain of 103.00 points or 1.62% from its previous close of ₹6,371.50. The market opened in green, and touched an intraday high of ₹6,713.00, trading volume of 7.24 lakh shares and a total value of ₹474.86 crore so far. Further, the stock had a P/E ratio of 42.05, which suggests that it has a premium valuation.

GST Council Reduces Motorcycle GST from 28% to 18% and Auto Component Tax to 18%

In a landmark move, the GST Council has made several reforms to the existing rates by rationalising them. The council reduced GST on motorcycles up to 350 cc from 28 percent to 18 percent, along with lowering GST on auto components to 18 percent. The move is a welcome change, especially in the two-wheeler and auto components segment.

Lower GST Boosts Two-Wheeler Demand, Input Costs and Competition Remain Key

The rally is supported by healthy delivery volumes, which reflect that investors are optimistic about the lower GST rates, expecting that this will improve affordability, drive demand in the premium two-wheeler segment, and strengthen the growth outlook for the company. However, amid the positive turnaround, investors should keep a close eye on rising input costs, competitive pressures in the two-wheeler market, and potential regulatory changes that could impact margins or demand in the medium term.

Eich͏er͏͏ Mot͏ors recorded a͏ nota͏b͏le g͏ai͏n ͏t͏oday, driven by͏ GST ra͏te cuts i͏mpactin͏͏g mot͏orc͏yc͏le͏s and ͏auto compon͏͏͏ents. ͏Tr͏͏ading͏ v͏olu͏mes reach͏ed 7.24 la͏k͏h sh͏ares wi͏th an ͏i͏nt͏r͏a-day pe͏ak of ͏₹6,713. The stock͏ c͏ontin͏ues to ref͏l͏ect marke͏t atten͏tion due t͏͏o͏ ͏t͏hes͏e re͏gula͏tory chan͏g͏es, ͏whil͏e factors ͏lik͏e͏ input co͏sts, competition, a͏nd evo͏lv͏ing po͏l͏icies remai͏n important in sha͏͏ping t͏he c͏ompa͏ny’s ͏oper͏a͏t͏ional la͏ndscape.

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