GST 2.0, festive push lagging: What Sept car sales data show, Pg13.

Key Highlights:

• Maruti Suzuki saw a marginal 2% increase in overall sales but a 6% decline in domestic sales in September 2025.
• Tata Motors recorded a 45.3% YoY surge in domestic sales, selling 59,667 units, and achieved record EV sales with 9,191 units.
• Hyundai reported a marginal 0.9% increase in domestic wholesale sales in September 2025, totaling 51,547 units.
• GST 2.0, implemented on September 22, 2025, reduced GST on small cars to 18% but increased taxes on bigger cars to 50% in some cases.

Detailed Insights:

• Maruti Suzuki's domestic sales decline is attributed to a sharp fall in UV sales, facing increased competition from Tata and Mahindra.
• Tata Motors experienced its best-ever month for electric vehicle (EV) sales, marking a 96% YoY increase, signaling a shift towards sustainable mobility.
• Hyundai saw a 17% increase in sales compared to August, suggesting that the festive season demand and GST benefits may be taking effect.
• GST 2.0 aims to boost car sales by reducing taxes on small cars (engine capacity not exceeding 1200 cc petrol/1500 cc diesel and length not over 4 meters) to 18%.
• Dealers faced transitional challenges due to the GST overhaul, potentially leading to losses of Rs 2,500 crore due to stocked cars taxed at older rates.
• Sales of entry-level cars priced below Rs 5 lakh have declined from 9,34,538 units in FY16 to just 25,402 units in FY25, indicating a shift in consumer demand.
• Car penetration in Indian households with yearly incomes less than Rs 4 lakh reduced to 1.4% in FY20 from 1.9% in FY16, reflecting economic challenges.

Key Concepts Involved:

• GST (Goods and Services Tax): An indirect tax levied on the supply of goods and services.
• Utility Vehicle (UV): A vehicle type that combines features of passenger cars with off-road capabilities.
• Electric Vehicle (EV): A vehicle that uses an electric motor for propulsion, powered by batteries.