India’s passenger vehicle industry witnessed an unprecedented surge in demand on September 22, as the rollout of the Goods and Services Tax (GST) 2.0 coincided with the beginning of Navratri, the start of the peak festive season. Carmakers including Maruti Suzuki, Hyundai Motor India, and Tata Motors reported record-breaking single-day sales, signalling a strong revival in the domestic auto market.
Maruti Suzuki led the momentum with nearly 30,000 car deliveries and around 80,000 customer enquiries on the first day, marking its strongest single-day performance in over three decades. Hyundai followed with close to 11,000 dealer billings, the company’s best single-day tally in five years. Tata Motors also recorded a historic 10,000 deliveries and more than 25,000 enquiries.
The surge comes on the back of GST 2.0, which reduced the tax incidence on passenger vehicles. Small cars defined as cars under 1.2-litre petrol and 1.5-litre diesel and sub-4 metre in length were earlier taxed at 29–31%, now fall under the 18% GST slab, while larger vehicles and luxury models attract 40% tax compared to 43–50% earlier. Automakers have fully passed on the benefits to customers, further enhancing the appeal of their festive-season discounts.
Price reductions have been substantial across line-ups. Maruti models such as the S-Presso, Alto K10, WagonR, Swift, and Baleno have become cheaper by up to Rs 1.3 lakh, while SUVs like the Brezza and Grand Vitara are lower by over Rs 1 lakh. Hyundai has cut prices by up to Rs 2.4 lakh, with reductions across the Tucson, Creta, Venue, and Exter, as well as hatchbacks like the i20 and Grand i10 Nios. Tata’s portfolio, including the Nexon, Punch, Harrier, and Safari, has seen benefits of up to Rs 2 lakh.
Strong buying interest is not limited to cities, with rural markets too contributing significantly. To keep pace with the surge, dealerships across the country have been operating longer hours.
With vehicle prices lowered, festive enthusiasm running high, and companies rolling out attractive schemes, the industry is gearing up for what could be one of the most robust festive seasons in recent years, with momentum expected to continue through Diwali.
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