The study added to growing industry evidence that the government’s GST 2.0 revisions have successfully stimulated demand and nudged buyers toward higher-value purchases.Recent cuts in goods and services tax (GST) on cars have pushed buyers toward premium upgrades, with about 80 per cent using their tax savings to opt for higher variants, better brands, or premium add-ons, said a PTI report.
SUVs continue to dominate purchase intent as many hatchback owners move up to larger vehicles, PTI reported, citing a SmyttenPulse AI study of over 5,000 buyers across city tiers in October 2025.
“Over 60 per cent plan to upgrade to higher variants within the same brand, while 46 per cent have already shifted from smaller cars to SUVs,” the study added.
Environmental awareness is also shaping purchase decisions, with 67 per cent of respondents citing ecological benefits as the key driver of EV interest, despite ongoing concerns over battery range, charging infrastructure, and replacement costs.
This trend underlines the growing confidence among middle-class consumers and a renewed appetite for premium features and advanced technologies in vehicles.
Financial sentiment appears to be strengthening as well. Over half of the respondents said that they were willing to make higher down payments or extend loan tenures, reflecting optimism about income stability and trust in policy-driven incentives for the auto sector.
The study added to growing industry evidence that the government’s GST 2.0 revisions have successfully stimulated demand and nudged buyers toward higher-value purchases.
