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India's Auto Boom: How GST Reforms Fueled Record October Sales

Automakers are celebrating an exceptional October with record-breaking sales figures across major brands. The growth was primarily driven by strong festive buying during Navratri, Dussehra and Diwali seasons. Recent GST reforms that made vehicles more affordable played a crucial role in boosting consumer demand. This sales surge reflects renewed confidence in India's automotive market and economic recovery.

Key Points: Automakers Report Robust October Sales Driven by GST Reforms

  • Kia India achieved best-ever monthly sales with 29,556 units in October
  • Skoda Auto recorded highest-ever monthly sales of 8,252 units
  • Nissan Motor reported 45% month-on-month growth with 9,675 units sold
  • GST reforms reduced tax rates on vehicles, making cars more affordable for buyers
2 min read

Automakers report robust India sales in October over GST reforms

Kia, Skoda, Nissan and Mahindra post record October sales with 30-45% growth, boosted by GST reforms and strong festive demand across India's auto market.

Automakers report robust India sales in October over GST reforms
"This achievement underscores Kia's strong and sustained momentum in India's competitive automotive landscape - Kia India Statement"

New Delhi, Nov 1

Automakers like Kia India, Skoda Auto India, Nissan Motor India, and Mahindra's Trucks and Buses on Saturday reported robust sales in the month of October, driven by strong festive buying due to GST reforms.

Kia India achieved its best-ever monthly sales performance in October, with 29,556 units since entering the Indian market.

With a robust 30 per cent year-on-year increase over the 22,735 units sold in October 2024 marking an unprecedented sales milestone, this achievement underscores Kia’s strong and sustained momentum in India’s competitive automotive landscape, the company said in a statement.

Skoda sold 8,252 units in October, which is its highest-ever monthly sales. Nissan Motor reported consolidated sales of 9,675 units, marking a 45 per cent month-on-month growth, and Mahindra and Mahindra's overall sales, including exports in the Trucks and Buses business, stood at 2,034 units.

Between January and October, Skoda sold 61,607 cars, hitting an all-time high annual sales in just 10 months. The growth was driven by Skoda's first-ever sub-4m SUV, the Kylaq, with steady demand for the Kodiaq, sustained contributions from the Kushaq and Slavia.

Nissan Motor reported that its performance reflected a strong festive demand for the New Nissan Magnite during Navratri, Dussehra and Diwali, complemented by the positive impact of the GST rate reduction announced by the Government of India.

Domestic wholesale stood at 2,402 units, supported by robust demand for the New Nissan Magnite, while exports reached 7273 units, reinforcing Nissan India’s position as a global export hub. The company recently celebrated the export of its 1.2 millionth vehicle, strengthening its “Make in India, Make for the World” philosophy.

Mahindra & Mahindra's overall sales, including exports in the Trucks and Buses business for the month, rose 14 per cent year on year (YOY) to 2,034 units from 1,791 units in the same month a year ago. Mahindra’s Trucks & Buses business comprises of Mahindra Trucks & Buses division (MTBD) and SML Mahindra Limited (SML).

GST 2.0 brought small cars and two-wheelers up to 350 cc to an 18 per cent slab, and introduced a 40 per cent flat rate for large cars, eliminating the previous separate compensation cess. This change makes cars more affordable, with small cars and large SUVs seeing price reductions, and has spurred a surge in sales and enquiries, especially with the festive season.

- IANS

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Reader Comments

R
Rohit P
Kia's performance is impressive! 29,556 units in one month is massive. Shows how much Indian consumers trust Korean brands now. The Seltos and Sonet are everywhere on our roads!
S
Sarah B
While the sales numbers look good, I hope this growth is sustainable. The auto industry needs to focus more on electric vehicles and reducing emissions. The current boom might be temporary due to festive season.
A
Arjun K
"Make in India, Make for the World" - love seeing Nissan exporting 1.2 million vehicles! This is the kind of manufacturing growth we need. Creates jobs and puts India on global map 🚗✨
M
Michael C
The GST reforms were much needed. The previous tax structure was too complicated. Now with 18% for small cars, more people can afford personal vehicles. Good move by the government.
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Nisha Z
Skoda's Kylaq seems to be doing really well! Good to see European brands understanding Indian market needs. The sub-4m SUV category is perfect for our city driving conditions and parking spaces.

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