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Key Points

India's auto industry is poised for significant growth with major players forecasting a return to 7% sales growth by FY27. Recent GST reforms have led to substantial price reductions across vehicle models, making cars more affordable for consumers. Both Maruti Suzuki and Hyundai report increased customer inquiries and optimism driven by festive demand and government policy changes. The industry sees huge potential given India's low car penetration rate compared to developed markets.

Key Points: Maruti Hyundai Forecast 7% Car Sales Growth After GST Cuts

  • GST reforms cut car prices by 3.5-13% across Maruti and Hyundai models
  • Maruti sees 15% jump in inquiries since PM Modi's GST rationalisation hint
  • Hyundai reduces Exter price by up to ₹89,209 and Venue by ₹1.23 lakh
  • New GST slabs set at 18% for small cars and 40% for larger luxury vehicles
2 min read

PV sales growth to touch 7 pc by FY27, price cut by up to 13 pc on some models: Industry leaders

Maruti Suzuki and Hyundai project 7% auto sales growth by FY27 with price cuts up to 13% following GST reforms and festive demand surge.

"India’s car penetration stands at 34 cars per 1,000 people, compared to 700-800 cars per thousand people in developed countries - Partho Banerjee, Maruti Suzuki"

New Delhi, Sep 12

Leading car sellers in India Maruti Suzuki and Hyundai Motor India has said that they expect a resurgence in the automobile sales as Goods and Services Tax (GST) reforms reduce vehicle prices by 3.5–13 per cent, amidst festive demand.

The country’s largest carmaker Maruti Suzuki India forecasted that the sector will return to a long-term growth rate of 7 per cent by FY27, supported by reduced car prices.

At a SIAM event in the national capital, Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki said that the company has seen a jump in inquiries by 15 per cent since August 15 when Prime Minister Narendra Modi indicated towards GST rate rationalisation.

Banerjee said that the GST cut has resulted in a 3.5 to 8.5 per cent price reduction across their range from small cars to larger ones.

“India’s car penetration stands at 34 cars per 1,000 people, compared to 700-800 cars per thousand people in developed countries. If the penetration moves up to 44 per 1,000 as well, there is huge room for growth,” he said.

Further, the income tax relief (for individuals earning up to Rs 12 lakh) and transmission of repo rate cuts could increase disposable income and bring down the EMIs.

Meanwhile, Hyundai Motor India expects its small SUV segment to witness the highest growth following the GST reforms. Hyundai Motor India Whole-Time Director and Chief Operating Officer Tarun Garg said that price cuts will be 11-13 per cent on small cars and 3-10 per cent on large models.

The company announced that the price of Exter will be reduced by up to Rs 89,209, the Venue by up to Rs 1.23 lakh, and the Creta by up to Rs 72,145, with new prices taking effect on September 22.

Compensation cess has been eliminated under the new structure, establishing two GST slabs for internal combustion cars: 18 per cent for small models and 40 per cent for larger and luxury vehicles. Prior to restructuring, all internal combustion engine (ICE) cars attracted a GST of 28 per cent in addition to a compensation cess of 1-22 per cent, depending on the length, engine capacity and body style.

- IANS

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Reader Comments

P
Priya S
This is excellent timing with the festive season approaching. Many families planning Diwali purchases will benefit from these price cuts. Hyundai reducing Exter by ₹89k is substantial!
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Aman W
While the price cuts are welcome, I hope the government also focuses on improving road infrastructure and parking facilities in cities. More cars without better infrastructure will just mean more traffic jams 😅
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Sarah B
The 34 cars per 1000 statistic shows how much potential the Indian auto market has. This growth projection seems realistic given the rising disposable incomes and easier financing options.
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Vikram M
Great move by the government! The two-slab GST structure makes so much more sense than the previous complicated system with cess. This will definitely boost auto sales and manufacturing.
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Nisha Z
I've been waiting for the right time to buy Venue. The ₹1.23 lakh reduction is exactly what I needed to finalize my decision. Booking next week! 🙌

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