Maruti Suzuki India Optimistic About Auto Sales Surge Post-GST Cuts
Maruti Suzuki India anticipates a rebound in domestic passenger vehicle sales growth to 7% following GST rate cuts, with expected small car segment growth of 10%. Factors like income tax relief and repo rate cuts will make cars more affordable, enticing two-wheeler riders to upgrade to four-wheelers.
- Country:
- India
Maruti Suzuki India is forecasting a resurgence in domestic passenger vehicle sales, expecting growth to hit around 7% following the recent reduction in GST rates on automobiles. This optimism was expressed by a senior company official during the Society of Indian Automobile Manufacturers (SIAM) annual convention.
The company, which dominates the small car segment, projects a 10% growth in this area, according to Partho Banerjee, Senior Executive Officer of Marketing & Sales at Maruti Suzuki India. He noted that the industry's long-term growth CAGR is likely to return to its traditional 7% by the fiscal year 2026-27, buoyed by fiscal interventions.
Factors such as income tax relief for annual incomes up to Rs 12 lakh and the transmission of RBI repo rate cuts making EMIs cheaper, alongside GST rate reductions, are expected to make small cars more affordable. This is seen as an opportunity for two-wheeler users to transition to four-wheelers, despite recent slowdowns in the sector.
(With inputs from agencies.)
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