Can GST Cuts Revive India's Tepid Auto Market?

For months, India’s car and bike showrooms have worn a muted look. Sales charts flattened, test drives slowed, and once the heart of Indian mobility, the entry-level market began to stumble under the weight of relentless price hikes.

Adding to that, fuel prices stayed stubbornly above Rs 100 a litre, regulatory upgrades like BS6 sent sticker prices soaring by nearly 30-50% in just a few years, and inflation squeezed household budgets. Buyers either postponed purchases or migrated to used vehicles. Now, a sharp GST rate reform promises to release that brake.

After years of juggling multiple slabs and ...