The GST cut in September has led to a 29% jump in registration of vehicles in the country except Telangana, the government told the Lok Sabha on Thursday in a reply to a question. 

Responding to a query raised by the BJP MPs Ashish Dubey and Miteshbhai Rameshbhai Patel on Thursday in Lok Sabha, Union Road Transport and Highways Minister Nitin Gadkari said, “There has been a 29.1% increase in the total number of vehicles registered (except in the State of Telangana) in October 2025 vis-a-vis the corresponding month of the previous year.”

Vehicle demand set to soar

Quoting the Society of Indian Automobile Manufacturers (SIAM), Gadkari further said that the vehicle demand is likely to rise based on the sales pattern of the last three months.

“The recent GST revamp is also encouraging the first-time buyers and rural buyers as lower GST reduces on-road prices of the vehicles, financing cost, and road tax levied on the vehicles,” he said.

CV segment benefits

Furthermore, the commercial vehicles segment has also benefited significantly from the reduction in GST rates from 28% to 18%. 

“In addition to generating incremental sales of new buses and trucks, this rationalisation is expected to stimulate replacement-led demand, thereby accelerating fleet renewal,” Gadkari said. 

Encouraging vehicle replacement

Gadkari said that the government is encouraging the replacement of vehicles, including state road tax concessions, waiver of registration fees, and automobile manufacturer-led incentives for the purchase of new vehicles. 

In his reply, the minister claimed that this renewed focus on fleet renewal is also expected to contribute to the expansion and improvement of public transport services across both urban and rural areas, enhancing mobility, increase logistics efficiency, and service reliability.

“Increased movement of goods, driven by higher vehicle availability and affordability, will further enhance logistics efficiency and contribute to a reduction in freight rates, thereby lowering the overall transportation cost,” Gadkari said.