Archive · 22 Sep 2026
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.
Indian auto retail grew nearly 20% year over year from October 2025 through August 2026.
More than three crore vehicles were registered during the 11-month period, compared with under 5% growth a year earlier.
Industry officials attributed the demand surge mainly to lower on-road costs and improved affordability.
Two-wheelers reportedly returned to a peak last seen in 2018, while rural markets outpaced urban markets across categories.
Automakers continue to face cost pressures from volatile crude prices, commodities and currency movements.
- Who
- The Indian automobile industry and FADA President Sai Giridhar.
- What
- Indian auto retail growth reached nearly 20% after GST 2.0, compared with less than 5% previously.
- When
- During the 11 months from October 2025 to August 2026, and around GST 2.0’s first anniversary.
- Where
- Across India, including rural and urban markets.
- Why
- Industry officials attributed the growth primarily to improved affordability from lower on-road vehicle costs.
- 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.