GaadiWaadi –
Carmakers have passed on much of the tax benefit to buyers and that appears to have unlocked a new round of demand
The recent GST revision on passenger vehicles is beginning to make a visible difference in the market especially among first-time buyers. Lower prices have started pulling more people into showrooms particularly in segments where affordability plays the biggest role. Small cars and compact SUVs are seeing the strongest response as even a limited reduction in on-road cost can significantly improve buying intent.
Maruti Suzuki appears to have been one of the biggest beneficiaries of the new tax regime. The company’s share of first-time buyers had dropped from 45 per cent in FY22 to 40 per cent in FY25 but that number climbed to 48 per cent between September 2025 and February 2026 following the tax cut. Compared to the April-August 2025 period, a rise of about 6 to 7 per cent can be seen.
A large part of this improvement is being driven by two-wheeler owners moving into the car market. Maruti has said that over 51 per cent of its post-GST customers came from this group – indicating that improved affordability is finally converting long-pending aspirations into actual purchases. Hyundai Motor India has also reported better sales among new customers.
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Its first-time buyer share in total sales rose from 39.7 per cent during January-August 2025 to 41.8 per cent in the September-December 2025 period. While the gain is more modest than Maruti’s, it still shows that the tax revision has created a healthier demand environment. Hyundai has attributed this to better affordability, a simpler tax regime and improved consumer confidence.
The recently updated Hyundai Venue saw its first-time buyer contribution increase from 44 per cent before the GST revision to 47 per cent afterward. The Creta also moved up – improving from 31 per cent earlier in 2025 to 34 per cent during September-December. Tata Motors has seen a similar trend as well with first-time buyer share in compact SUVs such as the Nexon and Punch rising by five per cent.
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Passenger vehicles under four metres saw effective taxation reduced from about 29-31 per cent to 18 per cent while models above four metres shifted from 43-50 per cent to a flat 40 per cent. These changes took effect in September 2025 and were followed by price cuts across several brands. Maruti also noted that sales of models in the 18 per cent GST bracket rose by 24 per cent after the change.
The post Maruti, Hyundai, Tata & Others See More First-Time Buyers After GST 2.0 Revision appeared first on Gaadiwaadi.com – Latest Car & Bike News by Surendhar M.