Navratri’s festive fervour, propelled by GST 2.0 rate cuts, fuelled unprecedented demand as Maruti Suzuki secured over 25,000 deliveries, Hyundai recorded 11,000 dealer billings, and Tata Motors achieved 10,000 deliveries on day one
Navratri’s festive fervour, propelled by GST 2.0 rate cuts, fuelled unprecedented demand as Maruti Suzuki secured over 25,000 deliveries, Hyundai recorded 11,000 dealer billings, and Tata Motors achieved 10,000 deliveries on day one
India's automotive sector witnessed an unprecedented sales boom on the first day of Navratri, with major manufacturers recording their highest single-day performance in years as the new GST 2.0 reforms took effect on September 22, 2025.
Hyundai Motor India Limited achieved its strongest single-day performance in five years, recording approximately 11,000 dealer billings on the opening day of the festive season. Tarun Garg, Whole-Time Director and COO of HMIL, attributed this success to the "auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms".
Maruti Suzuki India Limited dominated the market with retail sales exceeding 25,000 units, expected to reach 30,000 shortly. The country's largest carmaker received around 80,000 customer enquiries on the first day alone, marking what Partho Banerjee, Senior Executive Officer for Marketing and Sales, described as "something we haven't seen in the last 35 years". Since September 18, when additional price reductions were announced, Maruti has received 75,000 bookings, with nearly 15,000 bookings daily—approximately 50% higher than usual.
Tata Motors recorded 10,000 deliveries alongside over 25,000 customer enquiries on Navratri's opening day. The company reported particularly strong demand for its bestsellers, the Nexon and Punch, with dealerships extending working hours to accommodate the festive rush. Shailesh Chandra, President, SIAM and MD, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd. said, “The recent GST reduction and special festive offers have sparked an extraordinary wave of consumer interest and enthusiasm. In just the first two days, auto dealerships nationwide are witnessing unprecedented walk-ins, a surge in enquiries, and record deliveries across most segments."
The revolutionary GST 2.0 reforms replaced India's complex four-slab tax structure with a simplified framework. Small cars (petrol engines ≤1,200cc, diesel ≤1,500cc, length ≤4m) now attract 18% GST, down from the previous 28% plus cess structure. Larger vehicles face a uniform 40% rate, significantly lower than the earlier combination of 28% GST plus compensation cess reaching up to 22%.
Electric vehicles continue benefiting from the preferential 5% GST rate, supporting India's sustainable mobility agenda.
Maruti Suzuki implemented sweeping price cuts across its lineup, with reductions reaching up to ₹1.29 lakh. The S-Presso became ₹1.29 lakh cheaper at ₹3.49 lakh, while the Alto K10 saw a ₹1.07 lakh reduction to ₹3.69 lakh. Popular models like the Swift received cuts of ₹84,600, and the Brezza became ₹1.12 lakh more affordable.
Hyundai passed on benefits ranging from ₹60,640 to ₹2.40 lakh across its portfolio. The Tucson received the most substantial reduction of ₹2.40 lakh, while the popular Creta SUV became up to ₹72,145 cheaper. The Venue compact SUV saw price drops of approximately ₹1.24 lakh.
Tata Motors announced price reductions of up to ₹1.55 lakh across its range. The Nexon received the highest benefit of ₹1.55 lakh, followed by the Safari at ₹1.45 lakh and Harrier at ₹1.40 lakh. Smaller models also benefited significantly, with the Tiago becoming ₹75,000 cheaper and the Punch receiving an ₹85,000 reduction.
The GST 2.0 reforms represent one of India's most significant automotive tax overhauls since the original GST implementation, fundamentally reshaping vehicle affordability and accessibility across all segments whilst supporting the government's vision of making personal mobility more democratic.
While it all looks like it's 'Happy Days' for the industry, there is some skepticism around how long this will last. Speaking exclusively to Acko Drive, Vinkesh Gulati, Director, United Automobiles (M&M dealer), and Past President, FADA, said, "While Day 1 of the festive season has been encouraging, saying that sales will double is not right. In our dealership we'll grow by 15-20% but not double the numbers that we did on the first day."
(Disclaimer: The image used in the story is AI generated and is used for representational purposes only)
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