80% of festival sales made on Dhanteras; two-wheeler sales up 10–12%, four-wheelers 12–15%The implementation of GST 2.0 has turbocharged India’s automobile market this festive season, driving strong sales momentum from Navratri through Diwali.
Attractive price cuts and festive offers have led to a sharp spike in vehicle purchases, according to the Federation of Automobile Dealers Associations (FADA).With the new GST regime, customers saved ₹7,000–₹20,000 on two-wheelers and ₹60,000–₹2.5 lakh on cars, spurring sales growth of 10–12% and 12–15% respectively compared to last year.
In Ahmedabad alone, dealers sold 10,000–12,000 two-wheelers and 4,000–4,500 cars over the last five days—a 10–12% rise year-on-year. Across Gujarat, an estimated 60,000–65,000 two-wheelers and 18,000–20,000 cars were sold during the same period.
“Sales have picked up since Navratri and are significantly better this Diwali,” said Jayesh Nanda, Director of Nanda Group. “The GST cut has boosted affordability across all segments—from hatchbacks to premium SUVs.
”FADA Gujarat chairperson Pranav Shah called GST 2.0 a “game changer,” saying the impact, along with festive bonuses, doubled expected sales. “Nearly 70–80% of Diwali auto sales happened on Dhanteras alone,” he added.
FADA’s analysis also shows strong rural demand and a rise in financed purchases—with two-wheeler finance share increasing from 50% to 52%. The upbeat sentiment, good monsoon, and rising incomes are expected to keep the sales momentum going through the end of the month.