GaadiWaadi –
Price tags dropped just enough to nudge buyers back into showrooms and demand for models that slipped into the revised 18 per cent GST band surged this festive season
The 2025 festive season has once again shown where the country’s car-buying heartbeat truly lies. Through September and October, the mass market end of the spectrum pulled the biggest crowds with cars priced below Rs 10 lakh forming almost 78 per cent of overall sales. The chunk between Rs 5 lakh and Rs 10 lakh alone dominated the charts while the more affordable sub-Rs 5 lakh group added its own substantial share.
What really stirred the pot this year was the restructuring of GST slabs. With taxes softened for small cars and compact SUVs, the ripple effect was immediate. Price tags dropped just enough to nudge buyers back into showrooms and demand for models that slipped into the revised 18 per cent GST band surged as expected. Bookings for these cars jumped by nearly half.
The trend indicated that the tax rejig wasn’t merely a policy tweak as it directly translated into stronger retail momentum. The pace at dealerships through Navratri and Diwali was relentless. Industry voices joked about vehicles rolling out faster than staff could manage paperwork and SIAM’s numbers echoed the frenzy.
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Sub-4-metre cars and SUVs that logged around 1.7 lakh units in September pushed past the 2.2-lakh mark a month later – comfortably beating last year’s festive tally. What stood out further was the near-parallel demand curve in metros and rural belts. Unsurprisingly, Maruti Suzuki benefitted the most from this groundswell. The company noted that out of its five lakh festive bookings – half were for its small car range.
The contribution of these models spiked from 16.7 per cent before the GST cut to 20.5 per cent once the new slabs kicked in. Demand for their entry-level and compact portfolio surged more than 35 per cent across both city and countryside markets. That said, the excitement wasn’t restricted to the lower end of the market. In India’s larger cities, cars priced between Rs 15 lakh and Rs 20 lakh grew at roughly 26 per cent year-on-year.
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Meanwhile, models above Rs 20 lakh clocked growth of more than 40 per cent – showing that the aspirational premium segment is expanding at a surprising pace despite economic uncertainty. Cars positioned from Rs 5 lakh to Rs 20 lakh – effectively the backbone of the industry – saw steady annual gains in the 15 to 20 per cent range.
The post Compact Vehicles Contribute To Nearly 80% Of Overall Festive Car Sales appeared first on Gaadiwaadi.com – Latest Car & Bike News by Surendhar M.