Maruti Suzuki India has officially entered the elite ₹5 lakh crore market-cap club, fuelled by a sustained rally on the back of optimism surrounding GST reforms. The country’s most valued auto stock has zoomed over 11% in the past month, outperforming the BSE Auto Index, which gained 7.5% during this period. In contrast, the broader equity benchmarks, Sensex and Nifty, remained largely flat, delivering modest gains of just 0.5% during the same period, as concerns over U.S. tariffs dented domestic market sentiment.

Buoyed by GST reforms, Mahindra & Mahindra, the country’s second-most valued auto stock, has climbed over 6% in the past month, while Ashok Leyland surged 9% during the same period. Other major players, including Eicher Motors, Bajaj Auto, Hero MotoCorp, and TVS Motor, posted healthy gains ranging from 3% to 17%.

Tata Motors, however, lagged behind its peers, delivering just a 2% increase amid concerns over a cyber attack on its U.K. subsidiary, Jaguar Land Rover (JLR), which disrupted production at the British multinational.

Market analysts say the rally in the auto sector is broad-based, driven by renewed investor confidence, expectations of streamlined tax structures, and stronger consumer demand.

“The GST rate cut has been implemented from 22nd Sep 2025 and with automotive companies passing on the benefits to the end customer, automobiles in most segments has become cheaper. We believe multiple initiatives by the government, including GST cuts, will drive auto demand,” said Arun Agarwal, VP-Fundamental Research, Kotak Securities.

He opined that lower prices are expected to stimulate demand recovery across segments, particularly in mass-market categories. Companies are anticipating a healthy growth in sales in the current festive season. 

“Supported by the GST cut and festive season tailwinds, we expect the domestic two-wheelers wholesale volumes to witness growth as against flattish trend seen in H1FY26,” said Agarwal.

Similarly, we expect domestic passenger vehicle segment volume growth to accelerate from H2FY26 onwards, he added.

Maruti reaches ₹5 lakh crore in m-cap

On Tuesday, Maruti Suzuki India shares jumped as much as 3.2% to hit a fresh record high of ₹16,321 on the BSE, pushed the company’s market capitalisation to over ₹5.5 lakh crore. The auto major took almost 16 months to add the latest ₹1 lakh crore in its market value after hitting the ₹4 lakh crore milestone in March 2024.

The auto heavyweight has risen 52% against its 52-week low of 10,725 touched on December 24, 2024. On year-to-date (YTD), Maruti Suzuki stock has surged over 43%, logging its biggest yearly gain since 2017.

This milestone puts Maruti at the 8th spot globally, just behind Mercedes-Benz (₹5.11 lakh crore) and ahead of General Motors (₹4.97 lakh crore). Elon Musk’s Tesla continue to dominate the leadership position with a staggering ₹128 lakh crore m-cap, far ahead of second-placed Toyota at ₹23.19 lakh crore. China’s electric vehicle majors Xiaomi (₹16.81 lakh crore) and BYD (₹11.78 lakh crore) hold the third and fourth ranks, respectively.

Mahindra & Mahindra continues to hold the 11th position with a market cap of ₹4.40 lakh crore, giving India not one but two auto majors in the global top 15 ranking.

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