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GST Cuts Power Q4 Snap-Back for India Autos, 2026 Growth Outlook Strengthens

Analysts cite GST rate rationalisation as the catalyst for a late-2025 sales rebound, setting up high‑single‑digit growth in 2026.

Overview

  • Passenger vehicle wholesales topped 4.5 million in 2025, up about 5% year on year, as SUVs’ market share rose to 55.8%.
  • Maruti Suzuki posted its highest-ever annual wholesales at 1,806,514 units, logged record December retail of 286,000, and reported roughly 175,000 pending bookings.
  • Post-GST recovery was most visible in small cars, with Maruti’s Alto K10 and S-Presso up 92% year on year in December and the company’s Q4 wholesales up 22%.
  • Brokerage reports highlight broad-based momentum: two-wheelers up about 10% YTD, three-wheelers up roughly 49% YTD, tractors up about 21% year on year, and commercial vehicles showing an early-cycle upturn.
  • ACMIIL and Axis Securities attribute the rebound to GST rationalisation, improved financing and rural demand, while cautioning that pricing actions and commodity costs bear watching.