Navratri car sales surge as buyers flock dealerships after GST rate cut

Carmakers too are revising prices to align with the reforms.

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The first day of Navratri saw a sharp rise in vehicle sales across the country as customers rushed to dealerships to take advantage of lower prices under the new GST regime. Dealers reported a surge in footfalls and enquiries, with many buyers upgrading to higher segments thanks to reduced costs.

“The dealerships saw a massive increase in customer enquiries over the last three to four weeks and a very positive sales performance on the first day of Navratri,” Federation of Automobile Dealers Associations (FADA) President C S Vigneshwar told PTI. “People have been coming in for weeks, knowing prices would drop. Some are even upgrading one category higher due to the cost coming down.”

Vigneshwar added that the full impact of the GST rate cut and subsequent price reductions would unfold over the coming years. “This tax reform is not just for this week or season. It is going to benefit the industry for the next few years,” he said, thanking the government for responding to the industry’s long-standing demand.

Used car market demand

Online used-car platform CARS24 also reported record activity, with car deliveries on Monday jumping 400 per cent by 2 pm compared with daily averages. The highest demand came from Delhi-NCR, followed by Ahmedabad, Bengaluru, Pune and Mumbai. The platform also carried out over 5,000 car inspections in a single day — its highest in four years — as more people considered selling their vehicles.

A fresh breath of air

Industry body SIAM said the move will inject fresh momentum into the automotive sector. “By fostering self-reliance and domestic value addition, the automotive industry will continue to play a pivotal role in India’s journey towards becoming a developed economy,” said SIAM Director General Rajesh Menon.

Carmakers too are revising prices to align with the reforms. Honda Cars India Vice President (Marketing & Sales) Kunal Behl said the company’s models have been strategically priced, in addition to GST benefits, to make them more attractive for buyers until December.

The government’s tax overhaul, which has reduced GST on automobiles across categories, is expected to sustain higher demand during the festive season and beyond.