Archive · 27 Jan 2026
CEAT MD Cautious on Small Car Demand Post GST Cuts
The boss of CEAT, a company that makes tires, said it's too soon to know if more people will keep buying small cars because of recent tax cuts.
He thinks most people still prefer bigger SUVs.
The company is still expecting to grow by a lot this year, especially by selling tires for farms and motorcycles in rural areas.
They're also doing well in other countries like Europe and Southeast Asia, but the US market is a bit uncertain.
Last year, SUVs made up more than half of all cars sold in India, and the total number of cars sold went up by 5%.
CEAT MD Arnab Banerjee cautions it's too early to assess the durability of small car demand post GST cuts.
Overall consumer trend remains towards SUVs, with SUVs making up 55.8% of total passenger vehicles sold in 2025.
CEAT maintains double-digit growth guidance for the ongoing fiscal year, focusing on rural markets for farm and two-wheeler tires.
Passenger vehicle wholesales in India increased by 5% in 2025 compared to 2024.
CEAT sees good traction in international markets like Europe and Southeast Asia, while the US market remains uncertain.
- Who
- Arnab Banerjee, MD and CEO of CEAT Ltd
- What
- Cautious about the sustainability of small car demand post GST cuts
- When
- January 26, 2026
- Where
- India
- Why
- Overall consumer trend is towards buying SUVs and it's too early to assess the impact of GST 2.0 on small car demand
- Company
- CEAT Ltd
- CEO
- Arnab Banerjee
- Growth Guidance
- Double-digit growth for fiscal year
- SUV Market Share 2025
- 55.8%
- SUV Market Share 2024
- 53.8%
- Passenger Vehicle Sales 2025
- 44,89,717 units
- Passenger Vehicle Sales 2024
- 42,74,793 units
