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# Auto Sector Sees Major GST Restructuring: Impact on Maruti, Tata Motors, and Others
- URL: https://gujarat.news/auto-sector-sees-major-gst-restructuring-impact-on-maruti-tata-motors-and-others/
- Published: 2025-09-04T05:07:34.000Z
- Updated: 2025-09-04T05:07:34.000Z
- Author: Newsdesk
- Tags: GST, Automobile Industry, Tax Reform, Vehicle Sales, Indian Economy

### AI-Generated Summary

The government has restructured GST rates for vehicles and auto parts, removing the Compensation Cess and adjusting slabs to boost demand. This move primarily reduces taxes for entry-level cars, two-wheelers, and commercial vehicles, making them more affordable. While most categories benefit, motorcycles above 350cc will face higher taxes. CLSA predicts a broad-based positive impact, with Maruti Suzuki, Hero MotoCorp, and Ashok Leyland among key beneficiaries.

### In a nutshell

> This policy change by the government is a significant intervention aimed at stimulating growth and demand in the crucial automobile sector. By reducing tax burdens on many vehicle categories, it seeks to make vehicles more accessible to consumers and provide a much-needed impetus to manufacturers and their supply chains.

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**Source:** [CNBC TV18](https://www.cnbctv18.com/market/gst-revision-on-auto-tata-motors-maruti-hyundai-mahindra-shares-peers-that-get-impacted-19664272.htm?ref=gujarat.news)