From The Economic Times · Sharmistha Mukherjee · · 1m
First-time car buyers surge as GST cut boosts small vehicle demand
Lower GST rates spark first-time buyer surge in India's small vehicle market
In brief
Lower GST rates spark first-time buyer surge in India's small vehicle market First-time car buyers now account for 54% of Maruti Suzuki sales after GST 2.0 reduced taxes on small vehicles Originally reported by The Economic Times.
First-time buyers return
First-time car buyers now make up 54% of Maruti Suzuki sales in April-August, up from 42% a year earlier
“GST 2.0 has enabled the return of the first-time car buyers, broadening the base of the market”
GST 2.0 tax cut
Government reduced GST on small vehicles less than 4 meters long from 28% to 18% to boost affordability
SUV demand surges
SUV sales grew 67% year-on-year after GST cut, with models like Nexon and Punch leading growth
“Since GST 2.0, the SUV segment has recorded the strongest growth, expanding by 67 percent”
Entry-level SUV growth
Mahindra's entry-level SUV sales rose 20% year-on-year in first five months of fiscal, up from 5% growth in previous year
Market expansion
Overall vehicle sales in the 18% GST category grew 29% to 1.24 million units in April-August
The essence
First-time car buyers now account for 54% of Maruti Suzuki sales after GST 2.0 reduced taxes on small vehicles
