Car sales take off, industry sees GST cut fuelling growth ahead

India's top carmakers saw double-digit growth following a spike in demand after cuts in goods and services tax (GST) rates late in September coincided with the Navratri to Diwali festive season sales.

- Ayaan Kartik

Siam expects the healthy sales growth to be sustained.

(MINT)

There are early signs that this momentum may remain strong in the months and quarters ahead, top carmakers and industry veterans said.

Tata Motors Passenger Vehicles Ltd expects 7-8% growth in the industry's sales between October and March this financial year. Maruti Suzuki expects passenger vehicle sales to grow by around 7% next financial year. And Hyundai Motor India has guided for 5.2% CAGR of overall industry sales till financial year 2030.

These are substantially higher than earlier estimates. Car sales have been tepid since fiscal 2025 growing at 2% year-on-year. At the start of this fiscal, members of auto industry lobby group, Society of Indian Automobile Manufacturers (Siam) had expected slower growth of 1-2% in sales.

Moody's Ratings had said in May that India's car sales are likely to grow at a CAGR of 3.5% until 2030.

Siam now expects the post-September, healthy growth to be sustained as new customers buoyed by price cuts are likely to come into the market.