News Brief
GST Reduction Drives Car Sales Up: Maruti, Hyundai See Record Navratri Numbers
Cars being loaded on to a rake.
The start of Navratri, boosted by the GST 2.0 reforms, has sparked strong enthusiasm in India’s automobile market, with car dealers reporting robust sales nationwide, NDTV reported.
The new GST rate cuts have significantly lowered prices for passenger and commercial vehicles, delighting customers.
Maruti Suzuki reported retail sales likely to surpass 30,000 units on the first day of the rate rationalisation. Hyundai Motor India Limited (HMIL) recorded nearly 11,000 dealer billings, marking its highest single-day performance in five years.
According to Tarun Garg, whole-time director and COO of HMIL, the numbers reflect strong festive sentiment and growing customer confidence.
He said, “As one of the first automobile companies to fully pass on the full GST benefits to customers, we are delighted to make our customers' celebrations even more joyful. Looking ahead, we anticipate sustained festive demand and remain committed to delivering value and excitement to our customers.”
The Federation of Automobile Dealers Associations (FADA) noted increased footfalls across dealerships, as buyers rushed to take advantage of the reduced rates.
Dealers welcomed the next-generation GST reforms, saying the measures will boost purchasing power and give a significant push to the economy. Many also praised Prime Minister Narendra Modi for implementing the reforms during the festive season, amplifying the impact on customer sentiment.
The combination of festive cheer and GST rate cuts has thus created an ideal environment for automobile sales, highlighting the positive effect of tax reforms on consumer spending and the auto industry.
