GST Day 1 Cut Fuels Bumper Navratri For Maruti And Hyundai
Dealerships reported heavy footfalls, walk-ins, and strong conversion rates, reflecting a clear revival in buyer sentiment.
The combination of GST rate cuts and the onset of Navratri has delivered a festive windfall for India’s top automakers, Maruti Suzuki and Hyundai, with both companies reporting robust sales momentum on Day 1.
With the GST cut cushioning affordability and festive momentum building, this surge is raising hopes for a revival in the entry-level car segment, which has been through several rough quarters.
Maruti Suzuki recorded a surge in customer activity, with 80,000 enquiries and 30,000 deliveries on the first day itself. Bookings for small cars jumped by nearly 50%, and the company may soon run out of stock for certain popular variants due to overwhelming demand. Dealerships reported heavy footfalls, walk-ins, and strong conversion rates, reflecting a clear revival in buyer sentiment.
Hyundai Motor India also reported its highest single-day dealer billings in five years, clocking 11,000 billings on the first day of Navratri. The company attributed the surge to “robust festive sentiment and rising customer confidence,” and expects demand to remain strong throughout the festive season.
"This is a clear testament to robust festive sentiment and customer confidence," said Tarun Garg, chief operating officer of Hyundai India.
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Maruti Suzuki's senior executive officer for marketing and sales, Partho Banerjee, said the customer response towards the small cars segment has been unseen in the last 35 years.
Overall, since Sept. 18, the company has received 75,000 bookings, with nearly 15,000 bookings coming in every day—about 50% higher than usual, he added.
Several carmakers announced price revisions earlier this month, following the GST Council's decision to lower tax rates on a range of vehicles. The biggest beneficiary was the small cars segment, as the GST has been lowered from 28% to 18%. However, the prices of upper-end passenger vehicles, including SUVs, have also come down due to the removal of cess.
Maruti Suzuki has slashed car prices by up to Rs 1.29 lakh on account of the GST overhaul, whereas Hyundai India reduced its vehicle rates by up to Rs 2.4 lakh.
