Calling the GST 2.0 reforms a “positive tsunami” for the auto industry, Maruti Suzuki India Ltd (MSIL), the country’s largest passenger vehicle manufacturer, said the new tax regime has triggered a surge in bookings and deliveries across India.
Partho Banerjee, Senior Executive Officer (Marketing & Sales), told ANI that dealer partners are working round the clock to meet demand, while finance partners are fast-tracking loans to enable faster car deliveries. “The positivity created by GST 2.0 is clearly visible. Customers who had postponed purchases in August are now booking cars, making this festive season very strong for the industry,” he said.
According to Banerjee, daily bookings have nearly doubled from 10,000 to 18,000, with smaller cities driving stronger growth than metros. “We are witnessing 100% sales growth in small cars, while metropolitan areas are showing a healthy 35–40% rise,” he noted.
The momentum follows the GST Council’s decision to slash tax rates on small cars (under 4 metres) to 18% from the earlier 29–31%, effective September 22. By contrast, larger cars now attract 40% GST, down from 43–50%.
To further boost sales, Maruti Suzuki is offering festive discounts and planning to roll out an innovative finance scheme with EMIs starting at just ₹1,999 per month for entry-level cars. Banerjee said the company’s goal is to raise car ownership in India, where currently only 34 out of every 1,000 people own a vehicle.
“With GST 2.0, competitive pricing, and innovative finance options, we want to encourage more two-wheeler owners to transition to entry-level cars,” he added.