1 month ago
Electric vehicles entail a 5 percent GST and a 48 percent GST on hybrid vehicles, which seems disproportionate as they have far more environmental benefits than ICE vehicles.
March 21, 2024 / 09:42 AM IST
Maruti Suzuki share price has surged 16 percent since the start of the year.
Shares of Maruti Suzuki traded with marginal gains early on March 21 after Morgan Stanley assigned an 'overweight' call citing that a potential hybrid duty cut would bode well for the automobile major.
On March 19, at the Rising Bharat Summit in New Delhi, Nitin Gadkari proposed to slash the GST on hybrid cars to 12 percent from 48 percent.
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The global brokerage house has assigned a price target of Rs 11,228. The company has breached the target price. Maruti shares topped the Rs 12,000 mark for the first time on March 20.
There's a disparity in how vehicles are taxed. Electric vehicles entail a 5 percent GST and a 48 percent GST on hybrid vehicles, which seems disproportionate as they have far more environmental benefits than ICE vehicles.
In a recent report, brokerage firm CLSA highlighted that Maruti would maintain the top position in the CNG PV segment with a 72 percent share. Analysts predict that the market share of CNG PVs may rise from 15 percent in FY2024 to 22 percent in FY2030. Companies such as Maruti Suzuki and Tata Motors are direct beneficiaries of this.
The stock price has surged 16 percent since the start of the year.
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