The Indian automotive sector saw a significant hike in sales due to the rollout of GST 2.0. The period from September 22 to October 18 recorded the sale of more than 500,000 cars, a whopping rise over the regular monthly sales of 250,000–300,000 units.
The new GST rates that came into effect on September 22 have done wonders for the industry. A small car now attracts a reduced GST rate of 18%, down from the previous 28%, while larger cars are taxed at 40%. A price cut has brought the vehicles to a broader range of customers, resulting in more sales than before.
The sales during this time have been reported to be remarkable by the major manufacturers. Maruti Suzuki, the largest carmaker in the country, has delivered about 350,000 units, averaging approximately 13,500 units per day. The bookings during this period exceeded 450,000 units.
Tata Motors had more than 100,000 deliveries, accounting for a 33% year-on-year growth. Hyundai was retailing 2,500 cars a day on average. The total deliveries were 75,000 units.
Among Mahindra, Kia, and Toyota, the three companies that together had a share of over 90% of the domestic market, it is estimated that sales ranged from 100,000 to 150,000 units.
The festive season played a significant role in boosting the demand. On Dhanteras, Maruti Suzuki's sales were 14,000 units, which is a 20% rise compared to last year. Hyundai, too, was very active in this respect, with deliveries expected to reach 14,000 units, approximately 20% more than last year.
Industry experts expect the current situation to persist, with predictions indicating that sales for the first half of the year might exceed 2 million units. The automotive sector is set for a good performance in the near future due to the joining of lower GST rates, festive offers, and pent-up demand.
To sum up, the GST 2.0 introduction has energized the Indian automobile market, resulting in breakneck sales and an encouraging forecast for the sector's future development.