After a sluggish start, the GST 2.0 tax cut on September 22 jolted the market, and Tata Motors’ domestic passenger‑vehicle sales surged to 65,000 units, a 9% jump from the same period last year. The tax relief lifted the purchase price for many, driving more buyers into the showroom.
Maruti Suzuki still holds the crown with 1.85 lakh units, while Mahindra’s utility division added 63,000 and Hyundai 57,000 units—all up 10‑20% compared with August. That breadth of growth shows the sector isn’t just a tail‑spin; it’s a full‑blown rally as consumers chase value.
GST 2.0 is a double‑edged sword. It cuts the tax to 5% on passenger cars, squeezing dealer margins, so dealers are leaning on promo packs and flexible financing. For buyers, that translates into more leeway to negotiate price and get better after‑sales terms.
The industry’s momentum is amplified by Navratri sales, which typically boost registrations in the last week of September. With a 5.22% rise in retail sales this month, the market looks set to carry that pace into FY27, especially as manufacturers target a 5‑10% YoY growth.
Tata Motors is slated to roll out its next‑gen compact SUV by the end of Q4, so keep an eye on the launch schedule and test‑drive window. Buyers should watch for a potential price dip as the new model enters the market and for dealer inventory shifts that could affect availability.