GST Cuts: Did Auto Sales Bolster Festive Season Buying To Cross ₹7 Trillion Mark?

Auto sales receive festive push coupled with GST rate cut benefits. | Image: Unsplash (Representative Image)

With the festive season in full swing, the revenue is expected to surpass Rs 7 trillion mark in 2025, demonstrating India's largest spending power buoyed by next-gen good and services tax (GST) cuts, as per the latest data revealed by the central government.  

The pro-buying sentiments of consumers are expected to witness a surge across sectors like auto to electronics this year, especially with Diwali knocking on the door.  

The centre's measures have not only reduced cost of goods for end-consumers but promoted Swadeshi products and restrengthened domestic supply chains.

Notably, the digital payments recorded on September 22 skyrocketed to Rs 11.31 trillion from Rs 1.8 trillion on September 21. This GST cut led spending also saw sales of approximately Rs 75,000 crore in Delhi.

Is Auto Sector Benefiting Most From GST Cuts?

Th automotive industry indeed benefited from the strong buying sentiments led by GST rate being slashed coupled with Diwali demand. Auto major Maruti Suzuki doubled sales from last year, delivering 1,65,000 cars in eight days, setting a record of selling 30,000 vehicles on Ashtami, the highest single-day sales figure in 35 years.

Meanwhile, Tata Motors delivered over 50,000 vehicles, and Mahindra & Mahindra retail recorded a 60 per cent rise in SUV sales due to ahigh demand for Scorpio N, and XUV700.

Two-wheeler makers like Hero MotoCorp and Bajaj Auto reported double the showroom footfall compared to last year.

Consumer electronics see record sales

On the other  hand, reduced GST rates have triggered a buying spree in consumer electronics from TV's to refrigerators having risen by 40-45 per cent in the premium segment.

Reliance Retail saw 20–25 per cent higher sales, led by large-screen TVs and smartphones. Home appliance major Haier has reported 85 per cent growth, nearly selling out its Diwali stock of 85-inch and 100-inch TVs.

E-commerce site among top beneficiaries

The e-commerce platforms emerged as key beneficiaries of GST cuts, with millions shopping online for everything from gadgets to gold.

Amazon India recorded over 2,760 million customer visits, with 70 per cent from Tier-2 and -3 cities, purchasing smartphones, smart TVs, sarees, festive décor, beauty products, and essentials.

Meesho, an e-commerce market place, also saw record engagement of 117 million hours during Dussehra shopping week, and with 2,060 million visits.