Sept Auto Sales Preview: GST 2.0 Drives Bumper Month! Eicher, TVS, Tata Motors To Lead Growth
Sept. Auto Sales Preview: Out of all auto majors, Eicher Motors is expected to see the highest and most eye-popping 55% growth.
The month of Sept. has brought a lot of cheer for both investors as well as buyers of automobiles as the GST rate cuts effective Sept. 22, 2025 have reduced GST on vehicles from 28% to 18%. There were concerns of effectively no sales until Sept. 21, 2025, prompted by Shradha period (Sept. 6 to Sept. 21) as well as buyers awaiting the GST rate cuts.
But since then, lot of buyers were on the sidelines earlier have gone ahead with their purchase. The additional kicker of purchase during the auspicious festive period of Navratri is boosting sales further. According to estimates, Eicher Motors will be the undisputed winner this month while TVS and Tata Motors will be the other key winners.
Two Wheelers: Improvement in entry-level demand, export revival
GST cuts has promoted improvement in entry-level demand, which has been lacklustre led by increase in prices post BS6 and lack of growth in income and salaries of consumers. Inventory build-up with dealers for festive period till Diwali will be an additional kicker. Eicher Motors is expected to see the highest and most eye-popping 55% growth.
GST reduction is 350-CC vehicles from 28% to 18% has changed customer mindset since some of the Royal Enfield are now priced below Rs. 2 lakhs – a key psychological advantage. Despite bikes over 350-CC is moving up to 40% GST versus 28% earlier, that is just 10% of overall volumes for Eicher.
Furthermore, exports may log double-digit growth which will aid TVS and Bajaj. Although the former will show a staggering 33% growth led by scooter portfolio as well as domestic motorcycle growth.
ALSO READ
Citi Lifts Price Targets For Bajaj Auto, TVS, Hero MotoCorp, Eicher On Higher Sales Forecast
Four Wheelers: Inventory build-up with dealers
GST rate cuts has helped reduce car prices by roughly 8-9% but companies have taken the baton and shown higher cuts in small car space. Prices of entry level cars increased by over 50% due to transition to BS6 which made them unaffordable. This led to a flat growth between FY20-FY25. Maruti bore the brunt of flat sales in this segment.
The segment is expected to see a revival. Speaking to NDTV Profit, Partho Banerjee, Executive Director at Maruti Suzuki said the company is seeing 18,000 bookings a day and strong demand in small car segment.
Tata Motors is expected to show the highest growth and a first sign of growth revival post a lean FY26 till date. New launches like Harrier, refresh of Altroz are yet to show growth. M&M will likely get back to double-digit growth post the blip last month.
CV: Growth on favourable base, infra projects
Trucks have seen GST reduction as well but makers used to claim input tax credit on the sales and hence while the benefit is seen, the quantum will be lower compared to bikes and cars. All CV makers will show a 5-7% growth this month led by a favourable base (-12% YoY last year) and a pickup in the execution of infra projects.
Tractors: GST cuts, rural customer sentiment to drive growth
Momentum has been strong for tractors led by positive rural sentiment in the first half. The momentum is expected to continue with GST reduction from 12% to 5% now on tractors. Experts say both M&M and Escorts will show double-digit growth and new launches by Escorts could lead the momentum as well. Year-to-date growth has been over 20% for both tractor makers.
