Maruti Suzuki, the leading car seller in India, achieved a new milestone on the first day of Navratri, selling approximately 30,000 cars across the country. The company also reported receiving around 80,000 inquiries, indicating strong consumer interest. This surge in sales coincides with the implementation of revised GST rates, which have lowered prices for several car models. Maruti Suzuki had previously announced price reductions to pass on the benefits of the GST adjustments to customers. For instance, the entry-level Alto K10 is now available at ₹3,69,900, reflecting a price reduction of ₹1,07,600, and the Grand Vitara has also seen a price decrease of ₹10,76,500. The GST revisions, effective from September 4, 2025, represent the most significant tax reforms since the implementation of GST on July 1, 2017. The changes involved reducing the number of tax slabs from four (5%, 12%, 18%, and 28%) to only two (5% and 18%). The new GST structure categorizes cars based on length, engine capacity, and fuel type. Small cars, defined as those under 4 meters in length with petrol engines under 1,200cc or diesel engines under 1,500cc, attract an 18% GST. Larger or luxury cars, exceeding 4 meters in length or with larger engines, face a 40% GST. Hybrid cars are subject to the same rules as larger cars, while electric cars continue to benefit from a 5% GST rate. Maruti Suzuki, being the largest car manufacturer in India, is poised to benefit significantly from these changes due to its focus on small cars. However, it’s crucial that vehicles meet all the criteria to fall within the lower tax bracket. For example, the Jimny, despite being under 4 meters, has a 1.5-liter petrol engine, putting it in the 40% tax slab. Similarly, the Ertiga, while having a 1,198cc engine, is 4.3 meters long, also placing it in the 40% GST bracket. Non-compliance with even one criterion results in the vehicle being subject to the higher tax rate.
