The rollout of GST 2.0 in India on Monday resulted in crowded car showrooms and a surge in online shopping as consumers sought to benefit from lowered prices on groceries, electronics, clothing, and other essentials. Small cars experienced the largest price reductions under the new tax regime, marking the first significant rush at car dealerships since the indirect tax system began in July 2017. Partho Banerjee, Senior Executive Officer of Marketing & Sales at Maruti Suzuki, described the customer response as “phenomenal,” noting that the company had not experienced such high demand in the past 35 years.
On the first day alone, Maruti Suzuki received over 80,000 inquiries and delivered more than 25,000 cars, with projections to reach 30,000 deliveries by the end of the day. Following the announcement of additional GST reforms, the company has recorded 75,000 vehicle bookings, averaging nearly 15,000 per day, a 50% increase compared to typical sales. Small car bookings surged by nearly 50%. Tarun Garg, Whole-Time Director and COO of Hyundai Motor India, remarked on the auspiciousness of the day coinciding with Navratri and the positive atmosphere surrounding auto sales due to GST 2.0. He reported approximately 11,000 dealer billings on launch day, the highest single-day billing in five years, reflecting both festive sentiment and increasing consumer confidence.
Amit Kamat, Chief Commercial Officer at Tata Motors Passenger Vehicles, noted that the online shopping surge has led to an increase in inquiries and bookings, alongside more showroom visits and a growing order book.