The combination of lower GST rates and festival season demand has given a significant boost to passenger car makers. India’s largest carmaker Maruti Suzuki recorded 80,000 enquiries and estimates close to 30,000 deliveries, while Hyundai recorded wholesales of 11,000 units on Monday, which coincides with the first day of Navratri and the implementation of lower GST rates.
Monday marked the start of the Navratri, following the conclusion of the 16-day Shradh period, a time when new purchases are typically avoided. The period from the end of Shradh to Diwali is considered the peak festival season. Also, on Monday, the much-anticipated reduction of GST on small cars and SUVs from 28% to 18% came into effect.
“The response from customers has been phenomenal—something we haven’t seen in the last 35 years. On the very first day, we recorded 80,000 enquiries, and have already delivered over 25,000 cars, with deliveries expected to touch 30,000 shortly,” Maruti Suzuki’s Senior Executive Officer for Marketing & Sales Partho Banerjee said.
Hyundai Motor India Whole-time director and COO Tarun Garg said: “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. On Day 1 alone, Hyundai Motor India Limited recorded around 11,000 Dealer billings, which is our highest single-day performance in the last five years.”
All major passenger car makers have announced that they are completely passing on the benefits GST cut, while many, including Maruti Suzuki and Hyundai, have given additional discounts on top of the low GST benefits to boost sales. Maruti Suzuki has announced higher price reductions across its entire vehicle lineup, with cuts ranging up to Rs 1.29 lakh.
For instance, the S-Presso has become the most affordable car in Maruti Suzuki’s portfolio following a price drop of around Rs 1.29 lakh after discount and GST cut. The price of the Mahindra Bolero and Bolero Neo has come down by up to Rs 2.56 lakh, while the prices of the Tata Punch and Kia Syros have dropped up to Rs 1.6 lakh.
Hyundai’s Garg recently called the coming months “a mayhem” of car sales, saying the GST cuts have laid the groundwork for one of the most robust festive seasons in recent memory. Meanwhile, Maruti Suzuki’s Banerjee noted that this is the ideal opportunity to pull two-wheeler riders to upgrade to cars, indicating compelling offers to attract new car buyers.
“Since September 18th, when we announced additional price reduction (over and above GST), we have received 75,000 bookings, with nearly 15,000 bookings coming in every day—about 50% higher than usual. Demand for small cars has been especially strong, with bookings growing by nearly 50%,” Banerjee said.
“Enquiries remain very high, and we may even run out of stock for certain variants. Dealers are staying open late into the night to deliver cars to customers. Compared to last year, the overall response has been exceptionally strong.”
This festive period is of much significance to automakers owing to high consumer spending due to cultural significance. Volumes generated in this period account for a bulk of automakers’ annual sales. Rural areas, in particular, see a notable increase in vehicle sales during this time, as farmers often have more disposable income after the harvest season.
“This is a clear testament to robust festive sentiment and customer confidence. 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,” Garg said.
Tata Motors Passenger Vehicles Chief Commercial Officer Amit Kamat said GST rate cut and offers have led to a sharp surge in enquiries and bookings, with a noticeable increase in showroom walk-ins, higher conversions, and a growing order book. “With the auspicious start of Navaratri today, we are expecting record retail activity.”
This strong demand is a relief for the domestic passenger vehicle industry, which has been struggling with weak sales in recent months. The industry’s sales this fiscal year have been subdued and nearly flat, with full-year growth initially projected in the range of 1-4%. However, the recent GST cut is now expected to boost the growth rate to 5-7%. Last week, S&P Global Mobility revised its 2026 growth forecast higher for the domestic passenger vehicle industry to 8.5% from 4.1%.
Gaurav Vangaal, associate director at S&P Global Mobility, said: “We expect an addition of 2 lakh vehicles in production, representing about a 3–4% growth in the next calendar year. We also see 1 lakh vehicles sales to be added, taking the expected growth rate up to around 8%.”