Indian auto retail grew nearly 20 per cent in the eleven months after the GST 2.0 reform, data shared by the Federation of Automobile Dealers Associations (FADA) showed. Over 3 crore vehicles were retailed between October 2025 and August 2026, against less than 5 per cent growth in the comparable period before the reform.

FADA president Sai Giridhar said affordability was the engine of the momentum, with lower on-road costs drawing first-time and long-deferred buyers back to showrooms. Two-wheelers have reclaimed peaks last seen in 2018, alternative-fuel vehicles overtook petrol models in the passenger segment for the first time, and rural markets are now outpacing urban ones.

Maruti Suzuki said its passenger vehicle sales surged nearly 36 per cent in the April-August period, with the entry-level segment up over 96 per cent. Hyundai’s Tarun Garg noted monthly industry volumes of over 400,000 units had become the new normal, with passenger vehicle sales growing over 29 per cent in the five months after March 2026.

The reform has quadrupled the industry’s growth pace, turning a festive-season spike into a lasting demand cycle.