Finance Minister Nirmala Sitharaman said on Wednesday that the new GST 2.0 reforms, effective from September 22, have given a big push to the automotive sector. Within weeks, car sales more than doubled to over five lakh units, marking one of the strongest festive performances in recent years.
Sharing updates on X, she noted that retail passenger vehicle sales between the rollout of the new GST rates and Diwali 2025 are estimated between 6.5 and 7 lakh units. “The GST 2.0 has given a significant push to the automotive industry,” she wrote, citing a media report on the surge.
Festive Boom Beyond Metros
The reforms have also driven strong demand across e-commerce and quick-commerce platforms. Sitharaman highlighted that premium products and instant-delivery services were key growth drivers. Consumer spending also spread beyond major cities into smaller towns, showing rising purchasing power across Bharat.
Auto Giants Record Strong Sales
Tata Motors reported delivering over one lakh cars between Navratri and Deepawali, recording a 33% year-on-year growth. The company said SUVs remain the top choice for Indian buyers.
Maruti Suzuki India also consolidated its lead in the passenger vehicle segment, with strong festive demand for both compact cars and SUVs.
Record Festive Trade Turnover
According to trade bodies, Diwali 2025 sales touched ₹6.05 lakh crore, a record high for India’s festive economy. The GST rate cuts and rising demand for swadeshi products played a key role.
The Confederation of All India Traders (CAIT) said the surge created around 50 lakh temporary jobs in logistics, transport, packaging, and retail.
Sustained Consumer Confidence
Consumers expressed satisfaction with stable prices despite high demand. Analysts said this stability could sustain post-festive consumption in the coming months.
The Finance Ministry called the trend a sign of structural reform success, adding that GST 2.0 has boosted both confidence and growth. The festive season, it said, reflected the resilience of Bharat’s economy and the strength of its domestic market.
