Archive · 31 Oct 2025
Maruti Suzuki Reports Small Car Demand Revival Driven by GST Cut and Festive Sales
Car company Maruti Suzuki in India is seeing more people buy their small cars again!
This happened because the government lowered the tax on them, making them cheaper right before the busy holiday shopping season.
The head of Maruti Suzuki said that people who couldn't afford cars before can now buy them.
They even lowered the prices for customers.
Because of this tax cut and the holidays, many people who used to ride motorcycles are now buying small cars.
Small cars are now making up most of Maruti Suzuki's sales, and they think this good trend will continue for the rest of the year.
The company is happy because they believe safe and easy personal transport is now easier for many families.
Maruti Suzuki is experiencing a revival in demand for small cars in India following a GST rate cut.
The GST on small cars was reduced from 28% to 18%, making them more affordable.
Record festive season sales were largely propelled by the demand for small cars, with October retail sales up 30%.
Small cars now constitute 69% of Maruti Suzuki's total sales, a figure expected to rise.
The company believes increased affordability has shifted consumer perception, favoring small cars over larger ones, and attracting two-wheeler owners to upgrade.
- Who
- Maruti Suzuki India Limited (MSIL), its Chairman RC Bhargava, and Senior Executive Officer Partho Banerjee
- What
- Witnessing a revival in demand for small cars, largely driven by a reduction in GST rates and boosted by the festive season.
- When
- Late September (GST rate cut), October (record festive season sales), with expectations of continued growth in the second half of FY26.
- Where
- India's passenger vehicle market.
- Why
- A GST rate cut from 28% to 18% has improved affordability, encouraging consumers, including two-wheeler owners, to upgrade to small cars.
- Company
- Maruti Suzuki India Limited (MSIL)
- Market Segment
- Small Cars
- Key Event
- GST rate cut on small cars to 18% from 28%
- Impact of GST Cut
- Increased affordability, revival of demand, consumers upgrading from two-wheelers
- Sales Growth (October)
- 30% retail sales growth, largely driven by small cars
- Small Car Contribution to Sales
- 69% of total sales, expected to increase
- Key Personnel
- RC Bhargava (Chairman), Partho Banerjee (Senior Executive Officer, Marketing & Sales)
Sources
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