GST Reform Boosts Car Sales: The start of Navratri this year has proved to be no less than a festival for automobile companies. The implementation of GST 2.0 and the significant price reductions on cars have directly impacted car sales. Showrooms have witnessed a huge influx of customers. Customers made record-breaking bookings and deliveries on the very first day.
India's largest car manufacturer, Maruti Suzuki, delivered approximately 30,000 cars to customers on 22 September. The number of inquiries reached 80,000. According to the company, this is the strongest start in the last 35 years. Smaller models like Alto, WagonR, Swift, Baleno, and S-Presso have seen price reductions ranging from ₹70,000 to ₹1.30 lakh. SUVs and sedan models are also offering savings of over ₹1 lakh.
Hyundai Motor India recorded dealer billings of 11,000 cars on the first day of Navratri, its best performance in the last five years. Its best-selling SUV, Creta, has seen a reduction of up to ₹72,000, while the Tucson SUV offers savings of up to ₹2.40 lakh. Smaller models like Grand i10 Nios, Venue, and Exter are also offering a benefit of ₹70,000 to ₹1.24 lakh.
Tata Motors delivered over 10,000 vehicles and registered over 25,000 inquiries on the first day of Navratri. Its popular SUVs, Nexon and Punch, are offering benefits of approximately ₹2 lakh and ₹1.58 lakh respectively. Harrier and Safari also offer savings of around ₹2 lakh.
Under the new tax structure, the tax rate on small cars has been reduced to 18%, down from 29-31%. The tax on larger and luxury cars is now 40%, compared to the previous 43-50%. As a result, cars have become cheaper, and companies are offering additional festive discounts.
Dealerships are making deliveries late into the night. Many companies reported that bookings have increased by approximately 50% compared to normal days. Companies expect the entire festive season to drive sales to new heights.
