Car Sales Surge: GST Impact & Navratri Boost

New Delhi, Sep 22 (PTI) The automotive dealers witnessed increased footfalls as buyers thronged dealerships in large numbers on Monday to buy their dream machines with lower price tags under the new GST regime, according to FADA President C S Vigneshwar.

In an interaction with PTI, he said that the dealerships saw a massive increase in customer enquiries over the last 3-4 weeks and a very 'positive' sales performance on the first day of Navratri.

"People have been coming in for the last three or four weeks, as they know prices are going to drop. A lot of people are inquiring, with some wanting to upgrade one category up due to the cost coming down," Vigneshwar said.

He noted that the overall positive impact of the GST rate cut and the subsequent price cuts would be felt by the industry over the next few years.

"I don't think this tax reform is for this week, month or the season. This tax reform is going to benefit us for the next few years to come," Vigneshwar stated.

"We are quite grateful as the government has brought down these rates. We, like other industries, have also been requesting for these rates to drop. And finally, I think that has happened," he added.


He, however, did not share any estimates on the vehicle sales for the first day of Navratri.

Online used-car platform CARS24 said Navratri opened on a record-breaking note, with it witnessing a staggering 400 per cent jump in car deliveries on Monday by 2 PM, compared to daily averages.

Most cars were bought in Delhi-NCR, followed by Ahmedabad, Bengaluru, Pune, and Mumbai.

The day also saw a rise in the number of people planning to sell their vehicles, with the company doing over 5,000 inspections in a single day, the highest in the last four years on the platform.

Meanwhile, in a statement, SIAM DG Rajesh Menon stated that by fostering self-reliance and domestic value addition, the automotive industry will continue to play a pivotal role in India's journey towards becoming a developed economy.

The GST rate cut will bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector, he added.

Announcing revised pricing for its model lineup, Honda Cars India Vice President (Marketing & Sales) Kunal Behl said that in addition to the GST benefits, the models have been strategically priced to make them more attractive for a limited period till December.