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Maruti Suzuki Q2 Sales Dip 5.1% as Buyers Awaited GST Tax Cuts

Maruti Suzuki experienced a 5.1% decline in domestic sales during the second quarter as customers held off purchases waiting for GST rate reductions. The company's export business showed remarkable growth, jumping 42.2% to achieve its highest-ever quarterly performance. Despite the domestic slowdown, Maruti Suzuki posted record net sales of Rs 401,359 million and a 7.3% increase in net profit. The GST changes that took effect in September moved smaller cars to a lower tax bracket, which had been anticipated by buyers throughout the quarter.

Key Points: Maruti Suzuki Q2 Domestic Sales Down Amid GST Rate Cut Wait

  • Domestic wholesales declined 5.1% to 440,387 units in Q2 FY2025-26
  • Exports surged 42.2% to record 110,487 units during same period
  • Net profit increased 7.3% to Rs 32,931 million despite domestic slowdown
  • GST changes moved smaller cars to 18% tax slab from previous 28% rate
2 min read

Maruti Suzuki Q2 domestic sales down 5.1% as buyers awaited GST rate cuts to kick in

Maruti Suzuki's Q2 domestic sales fell 5.1% as customers delayed purchases ahead of GST rate reductions, though exports surged 42.2% to a record high.

"customers deferred purchases in anticipation of price reductions following the GST-related changes - Maruti Suzuki Report"

New Delhi, October 31

The Board of Directors of Maruti Suzuki India Limited (MSIL) approved the financial results for the second quarter (July-September) of 2025-26 on Friday, reporting steady growth in profit and overall sales.

During the quarter, domestic wholesales declined 5.1% year-on-year to 440,387 units, as customers deferred purchases in anticipation of price reductions following the GST-related changes from September 22, 2025.

Under the new GST structure, smaller sub-4 metre cars were moved into the 18 per cent slab, while the compensation cess on automobiles was completely removed. Petrol and petrol hybrid cars, along with LPG and CNG variants that do not exceed 1200 cc and 4000 mm in length, are now taxed at 18 per cent instead of 28 per cent. On September 22, the first day of Navratri, all changes to GST rates took effect.

On September 3, sweeping changes were made under the next-generation GST (Goods and Services Tax) rationalisation, just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day.

However, exports for Maruti Suzuki grew by 42.2% to 110,487 units, marking the highest-ever quarterly export performance for the company.

Overall sales volume rose 1.7% to 550,874 units in the quarter.

Maruti Suzuki registered its highest-ever net sales of Rs 401,359 million during the quarter, compared to Rs 355,891 million in the same period last year.

Net profit increased 7.3 per cent to Rs 32,931 million, up from Rs 30,692 million in Q2 2024-25.

For the first half of FY2025-26 (April-September), the company sold 1,078,735 units, including 871,276 domestic and 207,459 export units.

MSIL recorded its highest-ever half-yearly net sales of Rs 767,606 million, compared to Rs 694,644 million in the same period last year.

Net profit for H1 FY2025-26 stood at Rs 70,048 million, as against Rs 67,191 million in H1 FY2024-25.

- ANI

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Reader Comments

P
Priya S
The export numbers are really impressive! While domestic sales dipped temporarily, Maruti is making India proud globally. More companies should focus on international markets like this.
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Arjun K
Good to see the GST rationalization helping middle-class families. Smaller cars becoming more affordable is exactly what our economy needs right now. Jai Hind! 🙏
S
Sarah B
While I appreciate the GST cuts, the timing could have been better communicated. Many of us were confused about when exactly the changes would take effect. Better planning would have helped both customers and companies.
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Vikram M
The profit growth shows Maruti's strong fundamentals. Temporary domestic dip is just a timing issue - sales will bounce back strongly in Q3. Smart investors know this is a buying opportunity! 💰
A
Ananya R
Finally some relief for CNG car buyers! The 18% GST instead of 28% makes eco-friendly vehicles more accessible. Great move for both environment and common people. 👏

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