Finance Minister Nirmala Sitharaman says GST 2.0 reforms have boosted domestic car sales, more than doubling them to over 500,000 units.New Delhi, Finance Minister Nirmala Sitharaman on Wednesday said that the GST 2.0 reforms, which came into effect from September 22, have given a significant push to the domestic automotive industry, with car sales more than doubling to over half a million units.
Market observers say that the retail total of the entire passenger vehicle industry between the implementation of the new goods and services tax (GST) rates on September 22 and Diwali could be anywhere between 650,000-700,000 units, Sitharaman posted on X.
“The GST 2.0, which came into force a month ago, has given a significant push to the automotive industry, with car sales more than doubling to over half a million units,” she wrote, citing a media article.
Also, during the period of Diwali shopping, e-commerce and quick-commerce platforms recorded sharp demand increases, “with premium products and instant-delivery services driving growth and festival spend extending beyond major cities”, the Finance Minister said.
Amid robust festive demand post reduction of GST on automobiles, Tata Motors said it has delivered over 1 lakh cars within the last 30 days from Navratri to Deepawali. The Tata Group’s automobile manufacturer saw a massive 33 per cent Year-on-Year (YoY) surge in sales during this period, with SUVs continuing to dominate the market.
Maruti Suzuki India also consolidated its position as the market leader in the passenger vehicle segment, comprising cars and SUVs.
Diwali sales in 2025 touched a record ₹6.05 lakh crore, led by GST rate cuts and strong demand for local or ‘swadeshi’ products. The Diwali trade surge is estimated to have generated temporary employment for nearly 50 lakh people across logistics, transport, retail assistance, packaging, and delivery.
Consumers expressed greater satisfaction with stable prices amid festive demand, aiding consumption continuity post-Diwali, according to CAIT.
