Festive Boom: Car Sales Hit Record High with GST Cut

The festive season has started in the country. First comes Dussehra… then Diwali. Not just for the people, this time it is going to be a grand festival for car companies as well. Every year during festivals, car sales are higher compared to other seasons. But this time, it has to be said, is something very special. With the Centre reducing the GST, which had been heavily levied until now, car sales are all set to create new records. Along with the GST reduction, the country’s largest car manufacturing company, Maruti, and others have also announced special discounts. This impact was visible right from the first day of Navratri celebrations. The rush and sales went to a range that has not been seen in the last several years. Maruti Suzuki India received 80,000 enquiries on the first day itself, and 30,000 cars were delivered on day one. At the same time, new bookings are also being registered at a much higher rate compared to the past.

Another major car manufacturing company, Hyundai Motor India Limited, also billed as many as 11,000 cars on the very first day of Navratri. It is noteworthy that this is the first time in the last five years that billing has taken place on such a massive scale. Not just Maruti and Hyundai, even Tata Motors and Mahindra & Mahindra (M&M) have reportedly seen significant increases in car sales. Market sources estimate that this trend is likely to continue throughout the festive season. Recent developments indicate that the GST reduction has infused fresh energy into the automobile sector. As a result, company inventories are shrinking, and sales are all set to register new records. With such massive car sales on the very first day of the reduced GST coming into effect, Maruti as well as Hyundai India shares traded with good gains in the stock market on Tuesday morning. All in all, automobile companies are moving forward on a profitable path.