GST 2.0 Sparks Auto Revival: Car Sales Double as Festive Demand Peaks

This article reports on how the implementation of “GST 2.0” (effective 22 Sept 2025) triggered a major uplift in India’s automotive market during the festive season. With rate cuts (e.g., small cars moved to 18% GST, larger cars to 40%), retail passenger-vehicle sales surged—estimated 6.5-7 lakh units in the Diwali window, more than double the prior monthly average of ~2.5-3 lakh. Dealers across brands (Maruti Suzuki India Limited, Hyundai Motor India Limited etc.) reported record enquiries and billings. The article highlights that tax reform improved affordability, boosted consumer sentiment, and aligned with the festive buying mood, making GST 2.0 a key catalyst in the auto-industry recovery. It also points out that sustaining this momentum will depend on supply chain readiness and price transparency post-festives. (CAclubindia)