Can GST Cuts Revive India's Tepid Auto Market?
As the festive season begins, a sweeping tax reset promises cheaper cars and bikes and a long-awaited demand revival for the auto industry.
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 ...
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By Prerna Lidhoo
22 Sep 2025
9739 Views

Autocar Professional Bureau