The rollout of GST 2.0 last month has sparked a remarkable resurgence in India’s automobile market, with over half a million cars sold within a month, marking one of the sharpest growth spurts in the sector’s recent history. Industry experts attribute the unprecedented sales boom to a combination of tax cuts, festive demand, and robust dealer incentives.
Auto Industry Becomes a Key Beneficiary of GST 2.0
According to market observers, the total retail sales of passenger vehicles between September 22 and Diwali are estimated to range between 650,000 to 700,000 units, nearly doubling the pre-GST 2.0 figures. The automotive industry, which typically records an average monthly sale of 300,000 cars, has thus emerged as one of the biggest beneficiaries of the new tax reforms.
Maruti Suzuki Leads the Charge
Between September 22 and October 18, Maruti Suzuki — India’s largest carmaker — retailed around 350,000 units, averaging 13,500 cars per day. The company reported bookings crossing 450,000 units, reflecting exceptional consumer sentiment and strong supply-side performance.
Tata Motors Records 33% YoY Growth
Tata Motors also hit a significant milestone, crossing 100,000 vehicle deliveries during the same period, a 33% year-on-year growth.
“Our SUV segment has led this momentum with models like Nexon and Punch performing exceptionally well,” said Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. The company’s EV division also saw remarkable progress, retailing over 10,000 electric vehicles, a 73% growth from the previous year.
Hyundai, Mahindra, Kia, and Toyota Witness Festive Boom
Hyundai India reported sales averaging 2,500 cars per day and recorded over 3,500 bookings daily since the implementation of GST 2.0. Meanwhile, Mahindra, Kia, and Toyota jointly sold between 100,000 to 150,000 units, reflecting strong demand across SUV and crossover segments.
Industry insiders revealed that dealer billings exceeded 11,000 units per day, the highest in five years. On Dhanteras, traditionally a peak sales day, deliveries reached 14,000 vehicles, up 20% year-on-year.
Dealer Sentiment and Supply Chain Impact
Dealers in major cities reported a near sell-out of popular models and extended working hours to manage the festive rush. However, supply constraints, particularly of high-demand variants, somewhat limited total sales volumes.
“Our previous estimates were to generate nearly twice the volume during the festive days, but supply bottlenecks capped the surge,” said a senior dealer in Delhi.
Policy-Driven Boost and Market Outlook
The GST 2.0 reforms, which slashed taxes on small cars from 28% to 18% and on larger vehicles from 40% to 28%, have given a decisive boost to the sector. Analysts predict this tax relief will not only stimulate short-term sales but also sustain long-term market growth, benefiting both manufacturers and consumers.
The first month post-GST 2.0 has already set a new benchmark for India’s automotive sector. With festive season demand, tax rationalization, and EV adoption accelerating, industry leaders expect this momentum to continue well into the next quarter.
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