M&M, ashok Leyland, And MGL Shares Tumble Up To Three Percent On Maharashtra's Motor Tax Hike.
Stocks of EV makers, CGD participant MGL, and light goods vehicle manufacturers tumbled on march eleven, taking along shares of related OEMs, fearing business effect because of
Maharashtra's hike in motor taxintroduced within the state budget for 2025.
Mahindra & mahindra (M&M) shares plunged over 3 percent in early trade, extending the promoting pressure seen in the past few weeks after hitting a 52-week high on february 10, but are better than the fifty-two-week low of Rs 1,789 hit on march 15 last year. mahindra & mahindra has currently unveiled electric-powered SUVs—BE 6 and XEV 9e—and also produces CNG-powered mini vehicles.
The stocks of ashok Leyland, which makes automobiles used for creation and incorporates light goods, dropped almost three percent, extending the fall by using nearly 17 percent inside the final 6 months.
Mahanagar Gas (MGL), which supplies compressed natural gas (CNG) and piped herbal gas (PNG) and is primarily
based in maharashtra, also noticed its shares underneath pressure, losing nearly 1.47 percent.
Maruti Suzuki and Tata Motors, which also can be suffering from the hike in motor tax, saw marginal losses in early change.
Substantially, HSBC has given a 'buy' name on maruti Suzuki, with a goal of Rs 14,000 in keeping with the share. This implies an upside capacity of almost 21 percent from the inventory's modern market price of Rs 11,551, according to the share.
While presenting the state's budget, maharashtra Finance minister Ajit Pawar had proposed to increase the motor tax levied on compressed natural gas (CNG) four-wheelers via one percentage. Currently, the motor vehicle tax levied on such motors tiers between 7 to 9 percent, based on vehicle and charge.
Moreover, a 6 percent tax on electrical motors priced above Rs 30 lakh was additionally announced, estimated to generate an additional Rs 170 crore for the country. The finances also proposed to impose a 7 percent motor vehicle tax on motors used for production work and mild goods sporting motors. This is anticipated to generate Rs 625 crore in additional revenue for the kingdom in FY26.
The proposed changes are set to take effect from april 1 with the beginning of the monetary year 2026. Ajit Pawar, who's also the Deputy leader minister of maharashtra, offered the first full price range of the Mahayuti 2.0 government on march 10.
Maharashtra ranked 2nd in phrases of EV registrations among 2019 and 2024, 2d handiest to Uttar Pradesh, registering four.39 lakh EVs out of the full 36.four lakh registrations in India. Moreover, numerous automakers have their headquarters within the country.
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