GST Rate Cuts Trigger Festive Auto Rush, Dealerships See Record Sales, Inquiries: Shailesh Chandra

The new reduced GST rates that have come into effect on Monday have had auto dealerships nationwide witness unprecedented walk-ins, a surge in enquiries, and record deliveries across most segments, according to Shailesh Chandra, President, SIAM and MD, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd

"The start to this festive season has been extremely encouraging. The recent GST reduction and special festive offers have sparked an extraordinary wave of consumer interest and enthusiasm. In just the first two days, auto dealerships nationwide are witnessing unprecedented walk-ins, a surge in enquiries, and record deliveries across most segments," the auto industry leader said in a statement Tuesday.

Statement from Mr Shailesh Chandra, President, SIAM and MD, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd.#SIAM #BTNR twitter/nhtNOwKKaj

- SIAM India (@siamindia) September 23, 2025

"This remarkable momentum echoes the Hon'ble Prime Minister's recent call to celebrate the festive season as 'Bachat Utsav' by purchasing products manufactured in India and emphasising that India's prosperity will gain its strength from the Swadeshi mantra," Shailesh Chandra added in his brief statement. 

GST Cuts Drive Auto Sales

Chandra said it is heartening to see families choosing this auspicious period to bring home new vehicles. 

Given the exceptional demand, customers considering a new vehicle should book early to ensure timely delivery, he suggested.“We are hopeful that this celebratory momentum will continue, making this festive season one of the most memorable for the industry and consumers alike.”

On September 22, the first day of Navratri, all changes to GST rates took effect.

Under the new GST structure, smaller sub-4 metre cars were moved into the 18 per cent slab, while the compensation cess on automobiles was completely removed. Petrol and petrol hybrid cars, along with LPG and CNG variants that do not exceed 1200 cc and 4000 mm in length, are now taxed at 18 per cent instead of 28 per cent. 

Diesel and diesel hybrid cars with engines of up to 1,500 cc and a length of up to 4,000 mm will also see the same reduction.

Major GST Rate Overhaul

On September 3, sweeping changes were made under the next-generation GST (Goods and Services Tax) rationalisation, just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day.

This is aimed at reducing the tax burden on citizens while stimulating economic growth.

The GST Council, after a threadbare discussion, approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation. 

As high as 99% of all goods that were previously in the 12% GST bracket have now been brought down to the 5% GST bracket, Finance Minister Nirmala Sitharaman said recently.

In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates--5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

MENAFN23092025007385015968ID1110101627