GST cut impact? Tata Motors sells 10k cars, Maruti, Hyundai sales soar on first day of Navratri amid reduced prices

Following the reduction in vehicle prices after GST reforms, Tata Motors reported sales of about 10,000 passenger vehicles on the first day of Navratri. Maruti Suzuki and Hyundai also saw substantial sales, with 30,000 and 11,000 units sold, respectively.

As per the new GST structure, sub-4 metre cars moved to 18%, and the compensation cess on automobiles was eliminated. Petrol, petrol hybrid, LPG, and CNG variants under 1200 cc and 4000 mm are now taxed at 18% instead of 28%. Diesel and diesel hybrid cars with engines up to 1,500 cc and a length up to 4,000 mm will also benefit from the same reduction.

Tata Motors sales

Tata Motors announced on Tuesday that its dealers sold around 10,000 passenger vehicles on the first day of Navratri amid declining vehicle prices due to a revised GST regime.

The automaker received over 25,000 customer enquiries at its passenger vehicle dealerships across India.

"We are seeing a very enthusiastic response from customers. Following the announcement of the new GST rates, we are passing on the full benefits to our customers, along with attractive festive offers," ANI quoted Tata Motors Passenger Vehicles Chief Commercial Officer Amit Kamat.

This has caused a significant rise in enquiries and bookings, along with more showroom walk-ins, improved conversion rates, and an expanding order backlog. The company's dealerships have opened earlier and extended their hours to accommodate the festive season rush, he said.

According to Kamat, the response to the company's portfolio has been phenomenal, especially for the popular bestsellers Nexon and Punch.

"With a strong pipeline of bookings and scheduled deliveries, we are fully geared to meet the festive demand and are optimistic about setting new records this festive season," he said.

On Monday, Maruti Suzuki and Hyundai Motor India reported bumper sales with buyers queuing up to buy their favourite models at lower price tags under the new GST regime.

Maruti Suzuki sales

India's largest car manufacturer, Maruti Suzuki India, received 80,000 enquiries and delivered 30,000 vehicles, achieving its best single-day performance in 35 years. Additionally, bookings for small cars increased by 50 per cent compared to typical festival season levels, reported ANI.

By the evening of 22 September, the carmaker announced that its retail sales had exceeded the 25,000 mark and were expected to surpass 30,000 by the end of the day, as dealerships anticipated remaining open until late at night.

Partho Banerjee, Senior Executive Officer of Marketing & Sales at Maruti Suzuki India, stated that customer response has been excellent on the first day of Navratri and under the new GST regime.

He observed that with lower prices, there has been a 50 per cent rise in bookings for small cars, and the company may run out of stock for certain model variants.

Hyundai sales

Leading automaker Hyundai recorded 11,000 dealer billings in a single day, marking its best performance in five years.

Hyundai Motor India COO Tarun Garg stated that the beginning of Navratri, supported by the boost from GST 2.0 reforms, has brought a significant boost to vehicle sales across the country, reported ANI.

"On day one alone, the automaker has recorded around 11,000 dealer billings, which is our highest single-day performance in the last five years," he said, adding, “looking ahead, we anticipate sustained festive demand and remain committed to delivering value and excitement to our customers.”

(With inputs from agencies.)