This time the lights of Diwali will shine not only from lamps but also from the headlights of new cars. Gleaming showrooms in cities, booking competition in villages and towns and pictures of “delivery day” on social media. All of them are writing a new story. The GST reform that took place on September 22 has completely changed the market, especially its strong impact is being seen in the auto sector. That means the country is now celebrating not only festivals but also four-wheelers.
The new report of Grant Thornton Bharat has made it clear that this festive season there has been a boom in car buying across the country. People are shopping openly, crowds are thronging the dealerships and waiting for the delivery of vehicles has now become a “festival ritual”. And behind all this enthusiasm is the government’s GST 2.0 reform, which has breathed new life into the Indian auto market.
Something like this…changed circumstances
Imagine, the situation was different till a few months ago. people were saying that “Don’t buy a car now, it will be beneficial if the tax is reduced.” But as soon as the changes in GST were announced, the market became lively. The crowd at the dealerships started increasing, and people said – “What are you waiting for now?” According to the report, about 41 percent consumers are planning to buy a new car in the next 3 to 4 months. Interestingly, 72 percent of these people had earlier postponed the purchase, so that they could take advantage of the relief in tax rates.
‘Buying behaviour’ is changing
The effect of this change is being seen not only on the sales of vehicles but also on the buying behavior of people. Now people are not just paying attention to price or mileage, but also to issues like technology, safety and fuel efficiency. The survey shows that 38% buyers are now leaning towards hybrid cars. Petrol cars are being preferred by 30 percent, while 21% consumers are showing interest in electric vehicles. This indicates that India is now gradually going through a ‘transition period’, where people are considering hybrids as a middle path before moving towards EVs.
Increasing focus on safety
The story of the SUV segment is no less interesting. The craze of SUV is continuously increasing in India. According to the report, 64% people are preferring to buy SUVs, and this is why SUV sales accounted for about 65 percent of the total car market in the last financial year. At the same time, Indian customers have become more conscious about security than ever before. About 34 percent consumers said that they give priority to safety features over price or mileage.
Customers becoming experience-oriented
It is also interesting that now customers are ready to spend a little more. The report shows that more than 35 percent consumers do not hesitate to pay extra for a better variant. Up to 65 percent said that they are ready to pay 10 to 15 percent more if they get premium features. This means that now the Indian market is not becoming “value-oriented” but “experience-oriented”.
Why do people want to buy a car
, According to Grant Thornton India reports, the largest share, 40% people your existing vehicle to upgrade Buying a new car. That means most buyers want to replace their old vehicle with a better, more modern and convenient option.
, after this 35% people personal use or for everyday travel Planning to buy a vehicle. This shows that the need for personal convenience and commuting has also become a major reason for purchasing a vehicle.
– 18% people for family buy additional vehicles Are thinking of. This means that the demand for purchasing vehicles is also increasing for the increasing needs and convenience of the family.
, small part, 5 people While purchasing a vehicle for other reasons 2 people wedding or marital occasions Are planning to buy a vehicle for.
Role of digital platform
Digital platforms are also playing an important role in this new era of car buying. According to the survey, 52 percent buyers now collect information through both online and offline mediums. Social media and car apps have become a big part of this process. 35 percent people get information about cars from social media, while 23 percent trust car apps.
GST structure changed
The biggest relief of GST 2.0 has come for small car buyers. The GST rate on small vehicles has been reduced from 28 percent to 18 percent, which can save up to Rs 1 lakh in the purchase cost. Its biggest impact is visible in Tier-2 and Tier-3 cities, where more customers are booking new cars than ever before.
An increase of 34 percent has been recorded in retail sales of passenger vehicles during Navratri. This is not just the effect of new models or festive discounts, but a sign of return of customer confidence. Stability of interest rates, increase in local income and incentive schemes on electric vehicles have also strengthened the market.
Grant Thornton Bharat’s auto expert Saket Mehra has said that this change is not just a seasonal trend but is a sign of a permanent change in the mindset of the Indian consumer. According to him, the increasing demand for hybrid technology, increasing focus on safety and desire for premium features will decide the direction of India’s next mobility era.
Companies will have to understand customer behavior
Now the challenge is of automobile companies and dealers. They have to understand this changing customer behavior. Emphasis will be laid on better financing options, attractive variants and digital experience. This festive season is not just a sales opportunity but also an indication of the future of India’s auto sector.
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