Big Savings Festival: GST 2.0 Brings Rush of Buyers for Cars, TVs and More

GST Reforms: On Monday, the first day of Navratri, markets witnessed a massive rush of shoppers. The reason was the recently implemented new GST structure and the auspicious occasion of the festival. To attract customers, retailers offered discounts, resulting in record sales of products like cars, air conditioners, and televisions.

Record in the Automobile Sector

Maruti Suzuki, the country's largest car manufacturer, reported delivering 25,000 vehicles in a single day. According to the company, demand is so high that stocks of some models are likely to run out. Hyundai also delivered 11,000 cars, the highest single-day figure in the last five years.

The highest number of vehicles were purchased in Delhi-NCR. Ahmedabad, Bengaluru, Pune, and Mumbai also led in sales. Partho Banerjee, Senior Executive Officer at Maruti Suzuki, said, "On the very first day, 80,000 people inquired about buying a car. 75,000 bookings have been made so far after the reduction in GST rates. We are receiving an average of 15,000 bookings daily, which is 50 percent more than normal."

Electronics Sector Also Booming

Sales of TVs and air conditioners also saw a significant jump. Previously, the tax on ACs was 28 percent, but now it has been reduced to 18 percent. Dealers reported that room AC sales nearly doubled on Monday.

Haier India President N.S. Satish said that sales nearly doubled on Monday compared to normal days. Meanwhile, according to SPPL CEO Avneet Singh Marwah, TV sales increased by 30 to 35 percent.

Record Sales of Used Cars

Along with new vehicles, the second-hand car market also remained buoyant. Online platform Cars24 claimed that deliveries of used cars on the first day of Navratri were 400 percent higher than normal. Delhi-NCR alone saw the highest number of deliveries, while Ahmedabad, Bengaluru, Pune, and Mumbai also saw strong demand. The company conducted over 5,000 inspections in a single day, its highest ever.

Why the Increased Purchases?

Indeed, the GST Council recently approved a two-slab system of 5 and 18 percent, replacing the four-slab system. Consequently, 295 items, including ghee, cheese, coffee, medicines, medical equipment, and electronics, have become cheaper. Tax rates have been reduced on a total of 453 items. GST has been fixed at 18 percent on small cars and 28 percent on large cars.

The auspicious festival season and tax cuts have combined to energize the market.