A wave of excitement swept through India’s automobile market on September 22, 2025, as the country’s largest carmakers—Maruti Suzuki, Hyundai Motor India, and Tata Motors—posted unprecedented sales numbers, mirroring the start of Navaratri and the rollout of the groundbreaking Goods and Services Tax (GST) 2.0 regime.
Maruti Suzuki India witnessed 80,000 customer inquiries and delivered nearly 30,000 cars, in what company officials called the “strongest single-day response in over 35 years.” Hyundai Motor India clocked 11,000 dealer billings, marking its best performance in five years. Tata Motors reported over 10,000 deliveries—a record for the company—and more than 25,000 inquiries, as buyers thronged showrooms for festive deals.
GST 2.0: Savings Drive Demand
GST 2.0 brought sweeping reductions in car prices across segments, with the biggest gains for small cars. The GST rate for sub-4 metre models fell to 18% from a cumulative 29-31%, with the compensation cess scrapped. Larger and luxury models moved to a 40% slab—down from 43–50%—putting more cars within reach of middle class buyers.
Car makers raced to pass on the full GST benefit to customers, typically offering additional festive discounts. Small cars such as Maruti’s Alto K10 and Tata’s Tiago saw price reductions from ₹46,000 to ₹1.20 lakh, while Tata’s SUVs like Nexon and Safari became cheaper by as much as ₹2 lakh. Hyundai cut prices by ₹60,000–₹2.4 lakh across hatchbacks, sedans, and SUVs, making many models attractive for first-time buyers and upgrader families alike.
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Festive Sentiment at Fever Pitch
The auspiciousness of Navaratri, combined with GST 2.0’s “Diwali gift,” was cited by automaker executives as a catalyst for the surge. Partho Banerjee of Maruti Suzuki remarked, “Enquiries remain very high, and certain variants may run out of stock soon.” Hyundai’s COO Tarun Garg credited “robust festive sentiment and customer confidence,” anticipating continued strong sales through the season.
Dealerships across the country saw heavy footfalls and conversion spikes, with buyers keen to capitalize on the limited-period price reductions and festive offers. Many dealers reported depleted inventories for popular small car and SUV variants before the end of the festive day.
Industry Impact
Analysts say GST 2.0’s implementation could boost broader consumer spending and economic growth, especially amid continued global uncertainty. Auto manufacturers are banking on sustained momentum, with Navaratri seen as a launchpad for the upcoming Diwali and New Year sales cycles.
Key Highlights
- GST 2.0 reforms have transformed the festive car-buying landscape.
- Leading to historic day-one sales performances for industry heavyweights.
- As buyers celebrate lower prices, carmakers are gearing up for an extended festive rally that could redefine India’s auto market growth trajectory.
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