4 hrs ago

GST 2.0 Quadrupled Indian Auto Retail Growth, Industry Says

India’s vehicle market grew much faster after GST 2.0.

More than three crore vehicles were registered in 11 months.

Growth was nearly 20%, compared with less than 5% the year before.

The industry says lower vehicle prices encouraged people to buy.

Some first-time buyers and people who had delayed purchases returned to showrooms.

Two-wheelers became especially popular again.

Rural areas bought vehicles faster than cities in several categories.

However, manufacturers still face higher costs from changing fuel, commodity and currency prices.

Key facts

Retail registrations: More than three crore vehicles were registered from October 2025 to August 2026.
Growth rate: Auto retail grew nearly 20% year over year during the period.
Previous growth: The corresponding period a year earlier recorded less than 5% growth.
Main demand driver: Affordability, supported by lower on-road vehicle costs.
Vehicles affected: Small cars, commuter two-wheelers, tractors and commercial vehicles.
Market trends: Two-wheelers reclaimed a peak last seen in 2018, while rural markets outpaced urban markets across categories.
Industry pressures: Manufacturers continue to face volatility in crude prices, commodities and currencies.

thehansindia.com · 4 hrs ago