This Diwali is no less than a golden era for the country’s automobile industry. Union Finance Minister Nirmala Sitharaman said on Wednesday that the GST 2.0 reforms implemented from September 22 have given tremendous impetus to the domestic auto sector. The result was that within a month car sales doubled and crossed the figure of 5 lakh units.
The crowd gathered at the dealership is an indication that the impact of GST 2.0 is now visible on the ground. The changes made in the tax structure have given the industry the ‘boost’ it needed for a long time. GST 2.0 reforms, which came into effect from September 22, not only gave impetus to the auto industry again, but also filled a new enthusiasm in the entire consumer market.
Estimated sales of 7 lakh cars
Union Finance Minister Nirmala Sitharaman said on Wednesday that an unprecedented surge in car sales has been seen since the implementation of GST 2.0. Within a month, car sales have doubled to more than 5 lakh units. Sitharaman wrote on
He said, “Market experts say that from the implementation of the new GST rates on September 22 till Diwali, the total retail sales of the entire passenger vehicle industry could be between 6.5 lakh to 7 lakh units.”
In the festive season, not only the auto industry, but the e-commerce and quick-commerce sectors have also registered a strong increase in sales. Demand for premium products and instant-delivery services further accelerated this growth. This time’s festive spending was not limited to just metro cities, but Tier-2 and Tier-3 cities also registered their strong presence in shopping.
Tata sold 1 lakh cars
during this time Tata Motors has announced that the company has delivered a total of more than 1 lakh cars in 30 days between Navratri and Diwali. In which SUVs again maintained their dominance. Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles Limited, said, “This achievement represents a growth of 33 percent compared to last year.”
He said, “The company’s SUV models have played an important role in this surge.” He said, “Nexon, which was India’s number 1 selling car in September 2025, alone sold more than 38,000 units, showing a growth of 73 per cent. At the same time, Tata’s cheapest SUV Punch has achieved a growth of 29 per cent with sales of 32,000 units.”
Maruti sold 3.5 lakh cars
On the other hand, Maruti Suzuki India further consolidated its leadership in the passenger vehicle segment. This Diwali, total sales across the country reached Rs 6.05 lakh crore, to which the reduction in GST rates and increasing demand for ‘swadeshi’ products contributed significantly. Maruti Suzuki It had delivered 38,500 units by Saturday evening itself, the first day of Dhanteras. Which was expected to be around 41,000 deliveries by the end of the day.
According to a report by FE, Maruti Suzuki has sold approximately 3.50 lakh cars between September 22 (after the implementation of the new GST rate) and October 18. Apart from this, booking of more than 4.50 lakh cars has also been registered.
According to trade organization CAIT, this festive boom provided temporary employment to about 50 lakh people in areas like logistics, transport, packaging and delivery. Amidst the GST rate cut and festive season offers, customers have made huge purchases of vehicles, due to which the consumption is expected to remain strong even after Diwali.
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