On the back of pending bookings amid a reduction in GST rates and higher discounts, India’s largest car maker Maruti Suzuki said it is projecting a record-breaking Navratri, with total retail sales expected to more than double to 2 lakh units during the nine days.
Maruti Suzuki has already delivered 1.65 lakh units in the first eight days of Navratri, with final numbers for today and tomorrow yet to be tallied, said Maruti Suzuki’s Senior Executive Officer for Marketing & Sales Partho Banerjee. “We are expecting to touch maybe a magical figure of 2 lakh units.”
Compared to the 85,000 units retailed during last year’s Navratri period, the company is forecasting sales to double this year. This growth is supported by a backlog of customers who held off on their purchases in August amid the expectation of a GST cut.
“In the first eight days of this year’s Navratri, we received 7.53 million inquiries and 1.5 lakh bookings, averaging 18,000 bookings per day. Retail sales have already touched 1.65 lakh units – an all-time high, surpassing the previous best in 2019-20, thanks to the love and support of Indian consumers,” Banerjee said.
The combination of lower GST rates and festival season demand has given a significant boost to passenger car makers. Maruti Suzuki had said that it recorded 80,000 enquiries and delivered close to 30,000 deliveries on the first day of Navratri itself, which coincides with the implementation of lower GST rates.
The strong resurgence in demand during Navratri follows several months of subdued performance. This rebound has been driven by a confluence of factors, most notably the highly anticipated GST rate cut on small cars, which took effect on September 22.
The reduction in the GST rate from 28% to 18% provided a significant boost to consumer sentiment, particularly in the entry-level and mid-range segments. Automakers responded by passing on the full benefit of the tax cut and offering additional festive discounts to boost demand.
Following the GST cut, Maruti Suzuki 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.