Archive · 3 Sep 2026
Maruti Suzuki Entry-Level Car Sales Double After GST Cut
Maruti Suzuki sold twice as many entry-level cars in the first four months of FY27.
The company’s CEO said a GST rate cut last year helped make cars more affordable.
This was especially helpful for people buying their first car.
Small cars had become harder to buy because regulatory costs increased over time.
Many families still see owning a car as an important goal.
Cars can provide more safety, comfort, and convenience, according to the CEO.
The share of electric, hybrid, and CNG vehicles also grew from 27% to 32%.
India’s passenger-vehicle industry had its biggest-ever year in FY26, selling 4.6 million vehicles.
Maruti Suzuki’s entry-level car sales rose 100% during the first four months of FY27.
CEO Takeuchi attributed the increase partly to last year’s GST rate cut, which improved affordability for first-time buyers.
The small-car segment had declined for years as rising regulatory costs made car ownership harder to afford.
Cleaner technologies’ share of industry sales rose from 27% to 32% between April-July periods.
Passenger-vehicle sales reached a record 4.6 million units in FY26, while exports reached 0.91 million units.
- Who
- Maruti Suzuki, its CEO Takeuchi, first-time car buyers, and India’s passenger-vehicle industry.
- What
- Entry-level car sales at Maruti Suzuki doubled in the first four months of FY27, alongside broader growth in vehicle sales and cleaner technologies.
- When
- The entry-level sales increase occurred during the first four months of FY27; the cleaner-technology comparison covers April-July periods, and the record industry figures refer to FY26.
- Where
- India.
- Why
- The CEO linked the sales increase partly to last year’s GST rate cut and improved affordability for first-time buyers.
- Entry-level sales growth
- 100% increase in the first four months of FY27
- Cleaner technologies
- EVs, hybrids, and CNG rose from 27% to 32% of industry sales
- FY26 passenger-vehicle sales
- 4.6 million units, the highest ever
- FY26 passenger-vehicle growth
- 7.9% over the previous year
- FY26 exports
- 0.91 million units, also a record
- Export growth
- 17.5% over the previous year
- Industry economic contribution
- The auto sector contributed more than Rs 22.75 lakh crore to India’s economy, according to SIAM president Shailesh Chandra