The industry continues to benefit from GST 2.0, with cars in the 18% tax bracket recording 30% growth and those in the 40% bracket growing 21%, Maruti Suzuki’s Partho Banerjee said. File
| Photo Credit: Reuters
India’s automobile industry is expected to grow by 10% this fiscal year and is optimistic about the upcoming festive season, with Onam already off to a positive start.
The industry continues to benefit from GST 2.0, with cars in the 18% tax bracket recording 30% growth and those in the 40% bracket growing 21%, Maruti Suzuki’s Partho Banerjee said on the sidelines of the Society of Indian Automobile Manufacturers’ annual convention.
Mr. Banerjee said first-time buyers now account for 54% of customers, reflecting growth across segments.
Citing the Wagon R as an example, he said the model recorded 21,000 registrations, which is a level last seen five to six years ago and underscored the impact of GST 2.0.
Hyundai’s Managing Director and CEO Tarun Garg said that, alongside GST 2.0, the Finance Bill’s tax exemption of up to ₹12 lakh last year and over 100-basis-point reduction in the repo rate have helped encourage first-time buyers. The tax relief has increased disposable income, while lower interest rates have reduced EMIs, making vehicle purchases more affordable.
Published – September 04, 2026 05:40 am IST
