GST 2.0 Boost: Maruti Suzuki's Bookings Growth Doubles In Tier 2, Tier 3 Cities

Maruti Suzuki India Ltd.'s bookings growth in Tier 2 and Tier 3 cities has nearly doubled, while bookings response for small cars was very positive in big cities, according to Partho Banerjee, Senior Executive Officer, Marketing & Sales.

"From the start of the GST 2.0 reform from Sept. 22, we are seeing a very good response," he told NDTV Profit. The GST 2.0 reform kicked in on Monday with GST on vehicles cut to 18% and 40%, move away from the previous slab structure of 28% to 31%, and 43% to 50%, respectively.

Banerjee highlighted, that the company is getting close to 80,000 inquiries daily. "We have clocked close to 18,000 bookings per day," he said.

"We are seeing good response for the small cars, typically for the 18% GST slab. The sale is getting better and better," he added.

Maruti Suzuki will soon to launch an innovative finance product for entry-level cars in order to make the cars more affordable to customers. Under new product scheme, customers can own an entry level car at Rs 1,999 per month.

Banerjee further noted, that its too early to pick up trends in individual models as of now. Price reduction in 18% GST Category has been 8.5%.

On delivery of cars, he noted, as of now the inventory with dealers is sufficient. "But, very soon we will have a waiting period for some of the variants," Banerjee said.

"We are further confident that, if the message further trickles down. The response is further going to improve," he added.

The latest revision in GST has brought cheer to India’s automobile industry and millions of potential buyers. The move has opened the doors for a significant reduction in the prices of two-wheelers and small cars, creating a wave of optimism among buyers.