Has GST cut sparked car booking boom during Navratri
Car bookings in India are skyrocketing because of a recent GST (Goods and Services Tax) cut. On the second day after the new GST rates were put in place, car bookings for companies like Maruti Suzuki, Hyundai, and Mahindra & Mahindra increased four times. This festive season is turning out to be a record-breaking one due to strong demand from customers.
Huge Increase in Bookings During Festivals
Vinkus Gulati, a former leader in the car dealer association, said that bookings were slow before Navratri, but they quickly increased when the festival started. He said that car sales during Navratri this year will be at least 50% more than last year. He added that while it will take time to process all the orders, strong sales are expected to continue until Diwali.
Success for Maruti, Hyundai, and Tata
Maruti Suzuki saw a 50% increase in bookings after they announced extra discounts on top of the GST cut. They are now getting about 15,000 bookings a day, compared to 10,000 before. On the first day of Navratri, Maruti delivered 30,000 cars. Hyundai and Tata Motors also had strong sales, delivering 11,000 and 10,000 cars, respectively.
Demand Likely to Continue
Hyundai's COO said that many customers were waiting to buy cars until the GST cut happened. He said that the demand that started during Navratri will keep going until Diwali and may last into December.
Effect of GST Reduction
The government lowered the GST rate on small cars and SUVs under 4 meters from 28% to 18%, which benefits consumers with savings of about 8.5% to 9.9% on cars. Because of this GST reduction, the auto industry is seeing a lot of activity this festive season, and this trend is likely to continue, leading to record sales.