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GST 2.0 Drives Festive Auto Surge as Maruti Reports Record Bookings

Lower tax on entry-level cars is drawing new buyers into showrooms.

Overview

  • Maruti Suzuki logged over 400,000 bookings and retailed 250,000 vehicles in the four weeks since the Sept. 22 GST rate change, according to the company.
  • The small‑car share of Maruti’s sales climbed from 16.7% before the change to roughly 21.5–22.2% afterward, with about 80,000 bookings for entry‑level models.
  • Maruti passed on the full GST benefit, cutting prices by up to Rs 1.29 lakh on the S‑Presso and reducing prices on the Alto K10, Celerio, WagonR and Ignis.
  • SIAM reported September passenger vehicle dispatches up 4.4% year on year to 372,458 units, with the new rates in place for only nine days of the month.
  • Automakers have ramped production to fulfill swelling orders, and SIAM’s president expects demand could continue past Diwali as more first‑time buyers enter the market.