Maruti Suzuki Reports 4,00,000 Bookings Since GST Cuts: Small Cars Back in Demand

Maruti Suzuki was one of several carmakers that promised to pass on the full benefits of GST reductions to end consumers, resulting in significant price cuts taking effect on September 22. The company has now announced that it has received 400,000 bookings in the four-week period since the price cuts were announced, just in time for the festive shopping season. 

Most interestingly, the company’s most affordable models accounted for over 20 percent of its sales volume in this period. Out of the roughly 400,000 cars booked during this time, around 80,000 were for the S-Presso, Alto K10, Celerio, and Wagon-R. The company characterises this as a 70 percent increase in demand. 

The S-Presso and Alto K10 now cost up to ₹1 lakh less depending on variant, and both now start well below the ₹4 lakh mark, contributing to this spike in momentum for the segment. Maruti Suzuki is confident that lower prices have led to a number of bike owners upgrading to their first car, indicating that the overall market is growing with new customers able to participate.

Demand is so high that the company expects some or all variants of these models to be out of stock in the near future. Maruti Suzuki has begun running its production lines on Sundays to reduce wait times and avoid disappointing prospective buyers. The company is also expanding its logistics operations to help deliver cars from its plants to customers’ locations, highlighting its increasing use of cargo trains to reach all parts of the country.  

While all segments have seen an uplift, the sudden resurgence in popularity for hatchbacks represents a U-turn for the segment, which has been slipping in terms of overall market share  over the past several years. Sales volume stands at 22.2 percent for the period since the GST cuts were announced, up from 16.7 percent before that.