GST 2.0 Boosts Auto Sales: SUV and Car Bookings Surge Ahead of Festive Season

India’s passenger vehicle market is seeing a significant uptick following the recent GST rate cut, signaling strong momentum for the automotive sector. Showrooms of major companies such as Maruti Suzuki, Hyundai, and Mahindra are reporting a steady increase in footfall, with bookings on Monday and Tuesday reportedly four times higher than in the previous weeks, according to industry experts.

Why Bookings Have Jumped

Before the GST changes, automakers intentionally reduced factory shipments and focused on clearing old stock to align with the revised price lists. With the GST on small cars and SUVs under 4 meters reduced to 18% (from 28%), customers are enjoying direct savings of approximately 8.5% to 10%.

Festive Season Effect

The ongoing Navratri festival, along with upcoming celebrations like Dhanteras and Diwali, has further amplified demand. Vinkesh Gulati, former president of the Federation of Automobile Dealers Associations (FADA), stated, “Customer interest has been strong since the first day of Navratri. Sales are expected to be at least 50% higher than last year, and could potentially double if supply chains and financing are optimized.”

Company Reports

• Maruti Suzuki: Daily bookings have risen from 10,000 to 15,000 units, with 30,000 vehicles delivered on the first day of Navratri.

• Tata Motors: Delivered 10,000 vehicles at the start of the festive season, reflecting the impact of the GST cut across the industry.

The combination of tax benefits and festive demand is helping automakers accelerate sales, indicating a strong start for the passenger vehicle market in the second half of 2025.