India's GST Cuts Boost December Car Sales, Maruti Suzuki Leads with Record Growth
India's September 2025 GST cuts on small cars and SUVs led to significant sales growth in December. Maruti Suzuki achieved record sales, while Mahindra rose to the second market position. Hyundai, however, saw minimal growth.
Insights:
India's automotive sector witnessed a remarkable upswing in December 2025, driven by the government's strategic decision to reduce the Goods and Services Tax (GST) on vehicles earlier in September. This policy adjustment, which saw the GST on small cars slashed from 28% to 18% and on large-engine SUVs from approximately 50% to 40%, was designed to stimulate consumer spending amid challenging economic conditions, including steep U.S. tariffs.
Leading the charge was Maruti Suzuki India Limited , which reported a record-breaking 178,646 units sold domestically in December, marking a 37% growth compared to the previous year. This surge was largely attributed to the 50% increase in small car sales, totaling 92,929 units, the highest since January 2025. Partho Banerjee partho banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, noted that the company is contemplating a potential revision of small car prices, given the current one-and-a-half-month order backlog for its most affordable models.
