The rollout of the new GST 2.0 reforms, which have reduced car prices, added further fuel to the festive buying sentiment. The twin impact of the festival and lower prices led to a remarkable performance for Hyundai Motor India Limited (HMIL).
The festive season got off to a strong start for the automobile industry as customers thronged car showrooms on the first day of Navratri. The rollout of the new GST 2.0 reforms, which have reduced car prices, added further fuel to the festive buying sentiment. The twin impact of the festival and lower prices led to a remarkable performance for Hyundai Motor India Limited (HMIL).
On the very first day of Navratri, Hyundai Motor India recorded around 11,000 dealer billings, marking the company’s highest single-day performance in the last five years. The strong demand highlights how the combination of auspicious timing and price benefits under GST reforms have boosted customer confidence.
Speaking about the milestone, Tarun Garg, Whole-Time Director and COO of Hyundai Motor India Limited, said, “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. On Day 1 alone, Hyundai Motor India Limited recorded around 11,000 Dealer billings, which is our highest single-day performance in the last five years”. He further added “This is a clear testament to robust festive sentiment and customer confidence. As one of the first automobile companies to fully pass on the full GST benefits to customers, we are delighted to make our customers’ celebrations even more joyful. Looking ahead, we anticipate sustained festive demand and remain committed to delivering value and excitement to our customers.”
The trend could continue through the festive season, with carmakers expected to benefit from improved affordability under the GST 2.0 reforms.
For small cars, the GST rate has been reduced to 18 per cent from 28 per cent.The small car encompasses petrol engine cars of <1200 cc and not exceeding 4 metres in length, and diesel cars of <1500 cc and not exceeding 4 metres in length.
For large cars, however, GST is tagged at a flat 40 per cent with no cess.
For two-wheelers, including bikes up to 350cc, the GST rate has been reduced from 28 per cent to 18 per cent.
For the agricultural sector, tractors, which were previously taxed at 12 per cent GST, will now be taxed at 5 per cent. Tractor tyres and parts, which were in the 18 per cent slab, have also been brought down to 5 per cent.
For buses with a seating capacity of 10+ persons, GST has been reduced from 28 per cent to 18 per cent.
The majority of the components used for the manufacture of motorcars and motorbikes have also been reduced by 18 per cent.
In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates–5% (merit rate) and 18 per cent (standard rate) along with a 40 per cent special rate for sin/luxury goods.
These changes came into effect from September 22, 2025.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed)