GST 2.0 and Festive Season to Boost Car Sales

Last updated: 09 September 2025


The Indian passenger vehicle industry is set to witness a strong demand rebound over the next two months, driven by the festive season and the recent GST rate rationalisation, according to Stellantis India CEO and Managing Director.

The executive noted that the government's decision under GST 2.0 to rationalise tax rates-making small cars more affordable is expected to trigger pent-up demand, with the November-December quarter performing better than earlier projections.

"From Onam and Ganesh Chaturthi to Navratra and Diwali, this is the period when customers make their big-ticket investments. With GST reforms adding affordability, the industry will see stronger growth than forecasted earlier," he said.

GST 2.0 and Festive Season to Boost Car Sales

Citroen Expands Line-Up with Basalt X Range

Stellantis' Citroen brand is also capitalising on the momentum by introducing the Basalt X Range, featuring all-new premium interiors and India's first intelligent in-car companion, CARA. Priced from Rs 7.95 lakh, the Basalt X is designed to appeal to the fast-growing segment of young Indian buyers seeking technology-rich, affordable vehicles.

"Basalt X marks a bold leap for Citroen 2.0. With premium interiors and innovative features, we are redefining the everyday driving experience while keeping prices accessible," said the Stellantis India business head and director for automotive.

The company highlighted that local R&D, manufacturing, and supply chain localisation have been key in keeping Citroen vehicles competitively priced for Indian consumers.

Industry Outlook

With GST benefits, new model launches, and festive buying sentiment, automakers are optimistic about a sustained demand revival. The Stellantis India chief expressed confidence that consumer affordability, coupled with government reforms, will refuel industry growth after a relatively subdued period.


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