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Sustained GST 2.0 demand spurs 26% rise in car sales
Business Standard
|January 02, 2026
Despite the revival in small-car demand, the share of SUVs in total industry wholesales continued to rise in calendar year 2025, increasing to 55.8 per cent from 53.8 per cent a year earlier.
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From September 22, small cars less than four metres in length with engines up to 1,200 cc for petrol and 1,500 cc for diesel attract 18 per cent GST, down from an earlier rate of 29-31 per cent, including cess. Under the new GST rates, larger cars are taxed at 40 per cent, from an earlier rate of about 50 per cent. The Centre has also withdrawn the compensation cess.
MSIL exported 395,000 vehicles in 2025, up over 21 per cent Y-0-Y, the company said on Tuesday. The automaker shipped 18 models to more than 100 countries and began exports of its first battery electric vehicle, the e-Vitara, sending over 13,000 units to 29 markets mainly in Europe since August. Mahindra & Mahindra ranked second in domestic PV sales in December, selling 50,946 units, up 23 percent Y-0-Y.
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