The first day of the implementation of new Goods and Services Tax (GST) saw car showrooms experience high consumer footfalls and equally robust booking numbers, with the north and west of the country leading the way.
GST 2.0 sparks record bookings and showroom footfalls
Partho Banerjee, senior executive officer, marketing & sales, Maruti Suzuki, said, “The response from customers has been phenomenal—something we haven’t seen in the last 35 years. On the very first day, we recorded 80,000 enquiries, and have already delivered over 25,000 cars, with deliveries expected to touch 30,000 shortly.”
“We have received 75,000 bookings, with nearly 15,000 bookings coming in every day—about 50% higher than usual. Demand has been strong, especially for small cars, with bookings growing by nearly 50%,” Banerjee added.
Sai Giridhar, vice president of the Federation of Automobile Dealers Association (FADA), said, “It has been quite a remarkable day. The kind of bookings we have received is phenomenal. Deliveries are also happening at the same pace. Our estimate is that we will be able to generate 2x volumes this time in the festive days.”
Over the weekend, dealers in most large cities had opted to keep their showrooms open beyond their normal business hours to meet the rush of customers eager to make the most of the offers doled out by dealers and carmakers.
“There will be no weekly off for dealerships this week. Typically, an automotive dealer keeps his showroom open till 6.30-7.00 pm, but it is now not uncommon to see them open till 9.00-9.30 pm,” Giridhar added.
According to FADA, from September 5 onwards, the industry was getting very high bookings. From 100 a day, it shot up to 250-300 a day in the last 7 days before the GST implementation date. Dealers have been reviving old sales leads to entice consumers.
Amit Kamat, chief commercial officer, Tata Motors Passenger Vehicles, said, “We are seeing a very enthusiastic response from customers. There has been a sharp surge in enquiries and bookings, with a noticeable increase in showroom walk-ins, higher conversions, and a growing order book. We are expecting record retail activity.”
Due to the unusually high number of bookings and deliveries over the last several days, many dealerships may likely report inadequate stock levels to meet the festive rush.
“Ensuring the vehicles reach us in time will be a challenge, and the next 4-5 days will be challenging. No OEM will have the bandwidth to manage the supplies in such a short period of time,” Giridhar added.
Auto makers pass on GST benefits to boost sales
Tarun Garg, whole-time director and COO, Hyundai Motor India (HMIL), said, “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. On Day 1 alone, HMIL recorded around 11,000 dealer billings, which is our highest single-day performance in the last five years. This is a clear testament to robust festive sentiment and customer confidence. As one of the first automobile companies to fully pass on the full 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.”
Honda Cars India revised the pricing of all its models on Monday. The entire range of the Honda Amaze is now priced under Rs 10 lakh, with reductions of up to Rs 1.2 lakh.
Kunal Behl, vice president, marketing and sales, Honda Cars India, said, “We are pleased to announce the new prices for our entire model line-up after GST reforms 2025. In addition to the GST benefits, the models have been strategically priced to make them more attractive for a limited period till December 2025.”
Bajaj Auto, the country’s fourth-largest two-wheeler maker, announced zero processing charges and comprehensive insurance benefits along with the 10% reduction in GST on all motorcycles under 350cc. Under the ‘Hattrick Offer’, buyers of the Pulsar NS125 ABS will save Rs 12,206, while those choosing the Pulsar N160 USD will enjoy benefits worth Rs 15,759 in Delhi.