Impact of GST 2.0: Maruti, Hyundai and Tata break sales records

The impact of the new GST slabs implemented by the Central Government on September 22nd was clearly visible on the market on the very first day.

With the start of the festive season, automobile showrooms were thronged with customers. Dealers passed on the full benefit of the GST reduction directly to customers, leading to a significant surge in vehicle sales. 

As a result, deliveries and billings for many automobile manufacturers have increased by five to six times compared to normal times, according to the companies themselves.

Maruti Suzuki's record breaking performance

India's largest automobile manufacturer Maruti Suzuki recorded around 80,000 customer enquiries and 30,000 deliveries on the very first day of implementation of GST 2.0. 

After the announcement of GST rates, the company had reduced the prices of its vehicles by up to Rs 1.30 lakh on September 18. After this, there was a huge jump in bookings and on an average 15,000 units started getting booked daily, which is around 50% more than normal. 

Let us tell you that the direct benefit of the price cut was seen on entry-level hatchbacks Alto K10 and WagonR, premium models Baleno and Swift, and SUV segment vehicles like Brezza and Grand Vitara.

Hyundai India records billing of 11,000 units

Hyundai Motor India recorded billings of 11,000 units on the first day after the implementation of GST 2.0, its highest single-day performance in the last five years. 

The company also reduced GST rates on its vehicles from 28% to 18%, resulting in reductions of up to ₹2.39 lakh on its SUV Tucson and up to ₹72,500 on the Alcazar.

Tata Motors' extra offers boost demand

Tata Motors is also offering customers benefits from the festive season, including reduced GST rates. The company is offering a total of up to ₹2 lakh on its vehicles. 

The Tiago is priced at ₹1.20 lakh, the Tigor at ₹1.11 lakh, the Harrier at ₹1.94 lakh, the Safari at ₹1.89 lakh, and the Nexon at ₹2 lakh.

Industry perspective

According to experts, vehicle prices have fallen due to the reduction in GST rates, which has led to a rapid increase in demand in the passenger vehicle segment. 

S&P Global Mobility estimates that the industry will grow by 5–7% in 2025, with production increasing to approximately 200,000 vehicles. This growth rate is expected to nearly double to 8.5% in 2026.