SIAM’s Shailesh Chandra believes GST 2.0 could make this year’s festive season a ‘memorable’ one

The sweeping GST reforms, which have seen GST on small cars being slashed from 28% to 18%—and a flat 40% rate on SUVs and large cars—could make this year’s festive season one of the most memorable festive seasons for both the automobile industry, Shailesh Chandra, president of industry body the Society of Indian Automobile Manufacturers (SIAM) and MD of Tata Passenger Vehicles and Tata Passenger Electric Mobility.

“The start to this festive season has been extremely encouraging. The recent GST reduction and special festive offers have sparked an extraordinary wave of consumer interest and enthusiasm. In just the first two days, auto dealerships nationwide are witnessing unprecedented walk-ins, a surge in enquiries, and record deliveries across most segments,” Chandra said in a statement.

According to Chandra, this remarkable momentum echoes the Prime Minister’s recent clarion call to celebrate the festive season as ‘Bachat Utsav’ by purchasing products manufactured in India and emphasising that India’s prosperity will gain its strength from the Swadeshi mantra.

“It is heartening to see families choosing this auspicious period to bring home new vehicles. Given the exceptional demand, customers considering a new vehicle should book early to ensure timely delivery. We are hopeful that this celebratory momentum will continue, making this festive season one of the most memorable for the industry and consumers alike,” he said.

Concurrently, Tata Motors reported a notable performance on the first day of the festive season, following the implementation of the GST 2.0 rate cuts. “Tata Motors records 10,000 deliveries and more than 25,000 enquiries on day one of Navratri, marking a strong start to the festive season,” the carmaker said in a statement.

Multiple industry executives have echoed Chandra’s sentiments. According to Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Limited , the largest maker of passenger vehicles in India, the phenomenal response the carmaker has witnessed is unprecedented in the last 35 years. Demand for small cars has been especially strong, with bookings growing by nearly 50%. Enquiries remain very high, and we may even run out of stock for certain variants,” he said.

Hyundai Motor India Limited also recorded approximately 11,000 dealer billings, its highest single-day performance in the last five years. “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. This is a clear testament to robust festive sentiment and customer confidence,” said Tarun Garg, COO, Hyundai Motor India.