First-time car buyers upgrading from motorcycles and scooters drive unprecedented demand for entry-level vehicles post-GST cut.
03 Nov 2025 | 1850 Views | By Shristi Ohri
Maruti Suzuki showrooms across India are witnessing an unusual phenomenon: sales teams are now counting helmets on discussion tables as an indicator of business, according to Executive Director Partho Banerjee at the company's latest press conference.
"In all our discussion tables, we find many helmets are lying. These are ...
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Maruti Suzuki showrooms across India are witnessing an unusual phenomenon: sales teams are now counting helmets on discussion tables as an indicator of business, according to Executive Director Partho Banerjee at the company's latest press conference.
"In all our discussion tables, we find many helmets are lying. These are the first new type of customers who are coming, the two-wheeler customers who want to upgrade to a four-wheeler," Banerjee revealed, highlighting the influx of motorcycle and scooter riders seeking their first car.
The trend has accelerated following the government's GST reduction on small cars announced on August 15. The company is responding with innovative financing schemes designed to make the transition from two-wheelers to four-wheelers more affordable.
"We are working on very innovative finance schemes that you can upgrade at a very reasonable price, because everybody aspires to have a four-wheeler," Banerjee said. "We are trying to put India on wheels, being a market leader."
The shift is particularly significant given India's road safety concerns. Chairman R C Bhargava emphasized the importance of this transition: "Selling cars for people who drive two-wheelers, who have the riskiest vehicle possible. The maximum road deaths are from people riding scooters."
Bhargava stated that providing safer transportation alternatives aligns with Maruti's core mission. "Maruti's objective is to serve India and its people. We were set up for that purpose. We believe that's our mission," he said.
The response has been overwhelming. Entry-level cars—Alto, S-Presso, WagonR, and Celerio—saw their contribution to Maruti's retail sales portfolio jump from 16.7% in the pre-GST era (April to September) to 20.5% after the tax revision.
The company currently has 250,000 bookings in the 18% GST category alone, out of a total 350,000 bookings. Production teams have worked multiple Sundays to meet demand, yet waiting periods of 2-3 weeks persist for several models.
The surge is particularly pronounced beyond major metropolitan areas. While bookings in the top 100 cities grew by approximately 50% in the 18% GST segment, growth in tier 2, tier 3, and rural markets reached 65%.
"We have strength in the rural area. There was clear guidance from the top management to expand into the up-country markets. In the last 1.5 years, we have added more than 500 touch points," Banerjee noted.
However, company officials acknowledged it's too early to quantify the exact proportion of first-time buyers. "Only one month has passed, so you are not going to get a meaningful answer yet," Bhargava said. "If you want to know the share of small car buyers or first-time buyers, I think you will need to wait for at least six months."
The company emphasized that if market demand warrants even smaller, more affordable vehicles, it would be willing to develop such products despite potentially lower margins, staying true to its mission of democratizing personal transportation in India.