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Automakers Slash Prices Ahead of GST 2.0 Rollout as Dealers Forecast Record Festive Sales

Maruti reports a surge in inquiries with 1.5 lakh bookings, signaling demand acceleration as revised rates take effect Sept. 22.

Overview

  • GST 2.0 reclassifies vehicle taxes to 18% for qualifying small cars and two-wheelers and 40% for larger models, effective Sept. 22.
  • Manufacturers pledge full pass-through: Volkswagen trims up to Rs 3.27 lakh, Skoda up to Rs 3.3 lakh, Jeep up to nearly Rs 4.8 lakh, and HMSI cuts up to Rs 18,887 on sub‑350cc two-wheelers.
  • Dealers project more than 5.2 million units sold in the 42-day festive window starting Sept. 22 and expect at least about 20% growth over last year.
  • Maruti Suzuki says inquiries are up roughly 15% with bookings at 1.5 lakh and guides for 15–20% festive sales growth as smaller models see the biggest gains.
  • Authorities have asked showrooms to display old versus new prices, and reporting indicates luxury vehicles could see reductions of up to Rs 30 lakh under the 40% slab.