The rollout of GST 2.0 has invigorated demand for some of India’s largest carmakers. The used-car space isn’t too far behind, if Cars24 is to be believed.
The online platform for pre-owned vehicles delivered five times more cars on Monday even as inspections rose to their highest in four years, Vikram Chopra, founder and chief executive at CARS24 Services Pvt. Ltd., said in a post on X, formerly Twitter.
“But the real story isn’t the numbers. It’s families driving home their first car. Parents upgrading to something safer. Couples celebrating milestones on wheels.”
Chopra’s update comes even as India’s largest carmaker Maruti Suzuki India Ltd., as well as smaller peers Hyundai Motor India Ltd. and Tata Motors Ltd. reported robust sales and bookings on the first day of Navratri, which by design coincided with the rollout of GST 2.0.
While Maruti Suzuki clocked 80,000 inquiries and 30,000 deliveries for the best one-day sales in 35 years, Hyundai India’s dealer billings rose to a five-year high of 11,000. Tata Motors gave away the keys to 10,000 cars in one day.
The government’s move to rationalise goods and service tax to just two slabs has reduced the tax on small cars to 18% from 28% earlier. Larger cars now attract 40% GST, sans any kind of compensation cess that increased total tax incidence to 50% in some cases.
{{/usCountry}}The government’s move to rationalise goods and service tax to just two slabs has reduced the tax on small cars to 18% from 28% earlier. Larger cars now attract 40% GST, sans any kind of compensation cess that increased total tax incidence to 50% in some cases.
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“The recent GST rate cut and special festive offers have sparked an extraordinary wave of consumer interest and enthusiasm,” Shailesh Chandra, president of industry body Society of Indian Automobile Manufacturers (SIAM) and managing director of Tata Motors Ltd., said in a statement.
“In just two days, auto dealerships nationwide are witnessing unprecedented walk-ins, a surge in inquiries, and record deliveries across most segments.”