Festive Cheer Meets GST 2.0: Auto Sales Soar with Record Bookings, Deliveries on Day 1 of Navratri

The introduction of the new GST 2.0 regime coincided with the onset of Navratri, and the results were nothing short of electrifying. With lower GST rates on cars, two-wheelers, and consumer durables, shoppers thronged showrooms, retail outlets, and e-commerce platforms, fueling a strong surge in sales across the country.

For the automobile industry, the festive start was marked by unprecedented activity. Pent-up demand, coupled with up to a 10% reduction in GST and festive discounts, reignited the market buzz. Early estimates suggest bookings surged by 20–30% compared to the first day of Navratri last year. 

Shailesh Chandra, President of Society of Indian Automobile Manufacturers (SIAM), said the GST cuts and festive offers have triggered an extraordinary surge in consumer enthusiasm, with dealerships across the country reporting record walk-ins, enquiries, and deliveries. He noted that many families are choosing the auspicious period to bring home new vehicles, urging buyers to book early amid strong demand. Chandra added, “The upbeat momentum could make this festive season one of the most memorable for the industry.”

Maruti Suzuki, the country’s largest carmaker, reported record deliveries on the day, driven largely by strong demand for small cars, where the company had announced substantial price cuts in addition to GST rate reductions.

“The response has been phenomenal—something we haven’t seen in the last 35 years. On the very first day, we recorded 80,000 enquiries, delivered over 25,000 cars, and expect to cross 30,000 deliveries shortly. Bookings since September 18 have already crossed 75,000, with nearly 15,000 bookings daily—50% higher than usual. Demand for small cars is especially strong, up nearly 50%,” noted Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki.

Hyundai Motor India also registered a milestone performance, logging 11,000 dealer billings on September 22—the first day of the nine-day Navratri festival, coinciding with the rollout of GST 2.0. The South Korean automaker’s claimed that this was its best single-day tally in the past five years.

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“This is a clear testament to robust festive sentiment and customer confidence. As one of the first automobile companies to fully pass on the GST benefits to customers, we are delighted to make our customers’ celebrations even more joyful. Looking ahead, we anticipate sustained festive demand and remain committed to delivering value and excitement to our customers,” said Tarun Garg, Whole-Time Director & COO, HMIL.

Tata Motors, too, reported strong momentum as footfalls and bookings surged. The Mumbai-based automaker recorded 10,000 deliveries and over 25,000 enquiries on Day 1 of Navratri, marking a solid start to the festive season.

“Following the new GST rates, we passed on the full benefits to customers, along with festive offers. This has led to higher showroom walk-ins, strong conversions, and a swelling order book. Demand for our bestsellers Nexon and Punch has been especially encouraging. With Navratri underway, we expect record retail activity this festive season,” said Amit Kamat, Chief Commercial Officer, Tata Motors Passenger Vehicles.

The momentum wasn’t limited to new cars. Used car marketplace Cars24 reported a massive 400% spike in deliveries by 2 pm on Day 1 compared to usual daily averages.

Under GST 2.0, smaller cars now fall in the 18% slab, while larger and luxury vehicles are taxed at 40%. Crucially, the compensation cess has been scrapped. Previously, cars attracted a 28% GST plus a cess ranging from 1% to 22%, pushing the total tax burden to 29–50%, depending on size and engine capacity.

Industry analysts see this as a defining moment for the sector. As Puneet Gupta, Director of India & ASEAN Auto Market at S&P Global Mobility puts it, “With the new GST taxation in place, India’s auto industry is witnessing a Big Bang start, paving the way for blockbuster quarters ahead. Market leaders are surging ahead as fence-sitters finally step in, turning anticipation into robust sales momentum.” 

With record enquiries, strong deliveries, and dealers staying open late into the night to meet demand, industry trackers believe this could turn out to be the strongest Navratri sales season in many years for both passenger vehicle and two-wheeler segments.