Quick Summary
India's automotive industry has shifted into high gear following the implementation of GST 2.0, with car sales more than doubling within a month of the new tax regime taking effect. The reform has not only boosted consumer sentiment but also driven one of the strongest festive-season performances in recent years. Since the rollout of new GST rates on September 22, retail sales of passenger vehicles are estimated to have touched 6.5-7 lakh units by Diwali, according to market observers. This mar
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FAQ :
Car sales have more than doubled within a month of GST 2.0 taking effect, with retail sales of passenger vehicles estimated to have reached 6.5-7 lakh units by Diwali, a significant jump from the previous average of 2.5-3 lakh units per month.
Maruti Suzuki, India's largest carmaker, has been the biggest beneficiary, retailing 3.5 lakh units between September 22 and October 18, with bookings exceeding 4.5 lakh units.
The GST on small cars was reduced from 28% to 18%, and on larger cars to 40%, providing buyers with an immediate price advantage.
The lower effective tax rates translated into savings ranging from Rs 40,000 to Rs 1.5 lakh per vehicle, depending on the model and segment.
Industry experts expect the strong sales momentum to continue through the next quarter due to lower effective prices, increased consumer confidence, and rising rural demand, though supply chain management will be key.
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