After the implementation of GST 2.0, the domestic automobile industry has gained strength. Car sales doubled to over 5 lakh units, while retail sales reached 6.5–7 lakh units by Diwali. Companies like Tata Motors and Maruti also recorded bumper sales, boosting the industry and logistics sector.
GST 2.0: Finance Minister Nirmala Sitharaman stated that GST 2.0, effective from September 22, has accelerated India's automobile sector. This move led to car sales doubling to over 5 lakh units, and retail sales hovering between 6.5–7 lakh units by Diwali. Companies like Tata Motors and Maruti recorded bumper deliveries and sales, which in turn boosted employment and business in the industry, logistics, and packaging sectors.
Record Surge in Car Sales
The Finance Minister told the media, "GST 2.0 has provided a significant boost to the motor vehicle industry. As a result, car sales have doubled, reaching five lakh units. This has proven to be a major turning point for the automobile sector." She also added that during Diwali shopping, e-commerce and quick-commerce platforms witnessed a significant surge in demand. Premium products and instant delivery services further accelerated this growth.
Tremendous Demand During Festivals
Following the GST reduction on automobiles, festive demand also accelerated the auto sector. Tata Motors reported that it delivered over 1 lakh cars in the last 30 days, from Navratri to Diwali. This auto manufacturer from the Tata Group recorded a 33 percent year-on-year growth in sales. During this period, SUVs continued their dominance in the market.
Maruti Suzuki's Report
Maruti Suzuki India has observed b performance in the passenger vehicle segment, which includes cars and SUVs. According to the company, due to reduced GST rates and robust demand for local or indigenous products, Diwali sales in 2025 reached a record ₹6.05 lakh crore. The surge in business during Diwali generated temporary employment for approximately 50 lakh people in sectors like logistics, transport, packaging, and delivery.
Benefits for Car Buyers
After the implementation of GST 2.0, consumers have also benefited. The new rates have led to a reduction in car prices. Additionally, during Diwali and the festive season, companies are offering discounts and financing options. This is motivating customers to purchase new vehicles, pushing the auto sector to new heights.
