GST Tax Cut Drives Car Sales Soaring in November
Tax Reforms Spark Surge as Car Sales Accelerate Across India
Pune: Top carmakers in India reported robust sales growth to dealers in November on Monday, boosted by an earlier GST tax reduction that lowered vehicle prices and spurred demand even in rural markets.
Market leader, Maruti Suzuki drove the passenger vehicle growth clocking 21 per cent on-year at 1,70,971 units last month, up from 1,41,312 units in the year-ago month. The growth was led by sport utility vehicles as well as small cars like Alto.
Maruti's small car segment, its biggest, saw sales rise 18.9 per cent last month, while its utility vehicle sales rose 22.9 per cent. In fact, automakers are finding it difficult to keep up with demand that stays buoyant after the end of the month-long festive season.
“We are not able to increase the production as per the market requirement,” Partho Banerjee, Maruti's head of marketing and sales, told reporters.
“Our production team is working on Sundays, on holidays to ensure that we are able to meet the requirement," he noted.
Tata Motors posted a robust 22 per cent year-on growth at 57,436 units last month. Its EV sales grew an impressive 52.1 per cent to 7,911 units, reinforcing rising consumer preference for electrified models.
Sales at Mahindra and Mahindra, the SUV specialist, which overtook rival Hyundai, also grew 22 per cent on-year at 56,336 units, up from 46,222 last year.
Nalinikanth Gollagunta, CEO, Automotive Division, M&M said sales momentum continued for its range of vehicles. “We also celebrated the one-year anniversary of our electric SUVs and launched India’s first authentic 7-seater SUV – the XEV 9S - along with the world’s first Formula E-themed special edition SUV, the Mahindra BE 6 Formula E Edition,” he noted.
Hyundai Motor sales rose 4.3 per cent on-year at 50,340 units in November. The automaker secured 32,000+ bookings within a month for its all-new Hyundai Venue, India’s first software-defined SUV. “Supported by GST 2.0 reforms, we continue to carry forward sales momentum with a year-on-year growth in our monthly domestic sales in November,” said Tarun Garg, whole-time Director & Chief Operating Officer, HMIL.
These four major carmakers such as Maruti, Tata Motors, Mahindra and Hyundai account for more than 80 per cent of total car sales in Asia's third-largest economy.
Similarly, sales at Toyota Kirloskar Motor soared 28 per cent on-year to 33,752 units. Its Vice President Varinder Wadhwa said the festive season, aided by GST reforms, helped sustain strong momentum. “New launches such as the Urban Cruiser Hyryder Aero Edition and Fortuner Leader Edition further boosted demand,” he noted.
JSW MG Motor sold 5,754 units, while Skoda Auto 5,491 units and Renault India 3,662 units last month.