Nifty EV & New Age Automotive Rises 1.93% as GST Cuts Boost Small Cars and 3-Wheelers

Mumbai, September 4, 2025: The Nifty EV & New Age Automotive index advanced 1.93%, touching an intraday high of ₹3,123.25 so far. The intraday gains came after the GST council announced tax rationalisation on small cars, 3-wheelers, buses and EV-aligned mobility segments. The gains have extended the index’s recent rally, with an overall positive trend in the market, with 24 companies advancing vs 11 declining.

Nifty EV Index Climbs ₹28.85 to ₹3,093.00 Amid Heavy Trading Volumes of 3,681 Lakh Shares

As of September 04, 2025, 10:34 AM, the NIFTY EV index stands at ₹3,093.00, marking a gain of 28.85 points or 0.94% from its previous close of ₹3,064.15. The market opened in green, and touched an intraday high of ₹3,123.25, trading volume of 3,681 lakh shares and a total value of ₹6,819.44 crore so far. Further, the index had a P/E ratio of 32.10 and a P/B ratio of 4.73, which suggests that it has a premium valuation.

Mahindra & Mahindra Leads with 5.78% Rise to ₹3,475.90, KEI Industries and Eicher Motors Follow

Among the top gainers today were Mahindra & Mahindra (M&M), which led the rally by climbing 5.78% to ₹3,475.90. The next top gainers were KEI Industries with a gain of 1.72% at ₹4,090.40, closely followed by Eicher Motors, Motherson Sumi (MSUMI), and CG Power, gaining 1.58%, 1.47%, and 1.45%, respectively.

Olectra Greentech Falls 7.41% to ₹63.88 on ₹2,636 Crore Volumes Amid Profit Booking

On the other hand, companies like Olectra Greentech led the losers’ pack, slipping 7.41% to ₹63.88 on exceptionally high volumes worth ₹2,636 crore. Other notable declines came from Ashok Leyland, Exide Industries, RattanIndia Enterprises, and Hyundai Motor India, each recording modest losses amid profit-booking pressures.

Small Cars, 3-Wheelers, and EV Mobility Tax Cut Spurs 18%-40% Rationalisation

The GST Council has announced major rationalisation steps that have positively impacted the small cars, 3-wheelers, buses and EV-aligned mobility segments. In the small cars segment, tax will now be levied at 18% instead of 28% on petrol/LPG/CNG ≤1200cc, diesel ≤1500cc, length ≤4000mm vehicles. Similarly, the GST has been reduced to 18% from 28% on 3-wheelers, buses, goods vehicles, and motorcycles up to 350cc. On the other hand, GST on Mid-size and large cars has shifted to a special rate of 40% replacing the earlier 28% + cess structure.

GST Rationalisation Could Enhance Affordability and EV Penetration, While Input Costs Pose Challenges

The GST council rate rationalisation comes in as a welcome move for the economy. The measures are expected to enhance affordability, drive sales in mass mobility segments, and improve penetration for EVs and hybrid vehicles. The council has also clarified the refund mechanisms for inverted duty structures, which is also a contributing factor to the rally. While investors cheered for the GST relief as it directly lowers the cost of ownership in entry-level cars, 3-wheelers and motorcycles, segments critical for EV adoption, they should still have an eye out for margin pressures from rising input costs, global supply chain challenges, and potential policy shifts.

Th͏e ͏GST council’s t͏ax ration͏alisation has reshaped th͏e auto and E͏V segments, m͏aking smal͏l cars, 3-wheeler͏s͏,͏ and motorcycles͏ mor͏e affordable while͏ simplifyi͏ng tax s͏tructure͏s for larger v͏eh͏icles͏. Th͏is ad͏jus͏tment aligns wi͏th broader͏ market trends͏ in mo͏bili͏ty and hybrid adoption, reflecting ͏regulatory ͏s͏up͏port ͏for the se͏ctor. ͏Trading ͏v͏olumes and price ͏movements highlight the immediat͏e market imp͏a͏ct͏ of these polic͏y changes.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY EV & NEW AGE AUTOMOTIVE

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations