Maruti Suzuki clocks over 350,000 bookings post-GST cut
What's the story
Maruti Suzuki India Ltd (MSIL) has achieved a major milestone by garnering over 350,000 bookings across its entire product range. Out of these, nearly 250,000 bookings have come from vehicles falling under the Goods and Services Tax (GST) slab of 18%. The surge in demand comes after the recent GST rate cut for small cars from 28% to 18%, just ahead of the festive season.
Market impact
GST cut revives small car segment
RC Bhargava, Chairman of Maruti Suzuki, told CNBC-TV18 that the GST cut has revived the small car segment. He said it has brought back customers who had previously stayed away from the market due to affordability concerns. The tax reduction, along with festive offers, has played a key role in reviving this segment.
Sales surge
Retail sales growth of 30% in October
Maruti Suzuki witnessed a whopping 30% retail sales growth in October, mainly driven by small cars. Vehicles under the 18% GST slab now account for 69% of the company's total sales, a number that is expected to grow in the coming months. Bhargava hinted at possibly upgrading existing small car models or launching new ones if demand continues to be strong in H2 FY26.
Demand dynamics
Shift in customer demographics and SUV demand
Partho Banerjee, Senior Executive Officer (Marketing & Sales), revealed that 65% of total bookings are coming from outside the top 100 cities, including rural areas. He also said many two-wheeler owners are now visiting Maruti Suzuki showrooms to buy small cars. The company's latest SUV, the Maruti Suzuki Victoris, has already garnered some 33,000 bookings since its launch with a few weeks' waiting period.