India’s Auto Market Ignites: GST 2.0 Reforms Drive Record-Breaking Sales for Festive Season
The Indian automotive industry is revving up for an unprecedented festive season, thanks to the timely introduction of new GST 2.0 reforms. These significant tax changes, which rolled out on September 22, 2025, coincided perfectly with the start of the auspicious festive period, creating a powerful surge in consumer demand. Automakers, by promptly passing on the full tax benefits to buyers, have seen sales figures soar, setting the stage for remarkable growth.
Maruti Suzuki Leads with Unprecedented Deliveries
As India’s undisputed market leader, Maruti Suzuki recorded an astonishing response to the GST price revisions. The company, which announced price cuts of up to ₹1.30 lakh across its diverse model range on September 18, experienced a buying frenzy. On the very first day of the GST roll-out, Maruti Suzuki reported 80,000 customer inquiries and completed close to 30,000 deliveries.
“The response from customers has been phenomenal—something we haven’t seen in the last 35 years,” stated Mr. Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki. He added that daily bookings have averaged an impressive 15,000 units, marking a 50% increase over normal levels, demonstrating the widespread impact of the price reductions on models from the Alto K10 to the Grand Vitara.
Hyundai Motor India Achieves Five-Year High
Not far behind, Hyundai Motor India also celebrated a monumental start to the festive period. The automaker reported 11,000 wholesales on Day 1, marking its highest single-day performance in five years. This impressive traction is attributed to the reduction of GST on small cars and SUVs from 28% to 18%, which translated into substantial price cuts for popular models. Buyers saw savings of up to ₹2.39 lakh on the Tucson and up to ₹72,500 on the Alcazar.
Mr. Tarun Garg, Whole-Time Director & COO, Hyundai Motor India, expressed his optimism: “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. On Day 1 alone, we recorded around 11,000 dealer billings, our highest single-day performance in the last five years.”
Tata Motors Sweetens the Deal with Festive Offers
Tata Motors joined its rivals in witnessing robust customer footfalls and bookings. Beyond merely passing on the GST benefits, Tata introduced attractive festive offers, providing total savings of up to ₹2 lakh depending on the model. Entry-level cars like the Tiago and Tigor offered benefits up to ₹1.20 lakh and ₹1.11 lakh, respectively, while SUVs like the Harrier and Safari saw savings up to ₹1.94 lakh and ₹1.89 lakh. The Nexon received the highest overall benefit, reaching ₹2 lakh.
A Bright Road Ahead for the Indian Auto Industry
Industry analysts are unanimous in their positive outlook for the passenger vehicle segment. S&P Global Mobility projects a robust growth rate of 5–7% for 2025, with production expected to increase by approximately 2 lakh vehicles. Looking further ahead, sales growth for 2026 is anticipated to nearly double, rising from 4.1% to an impressive 8.5%.
The combination of significant GST reductions, particularly on smaller cars and SUVs, and the inherent consumer enthusiasm during the festive season, has created a powerful catalyst for growth. This strategic tax reform is poised to not only boost immediate sales but also foster a sustained period of expansion for India’s dynamic automotive market.
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