GST cut sparks surge in two-wheeler owners upgrading to Maruti small cars
Autocar Professional, 4 Nov '25
Maruti Suzuki showrooms across India are observing a notable trend, with sales teams reporting an increase in the number of helmets placed on discussion tables, according to Executive Director Partho Banerjee at the company's latest press conference.
"In all our discussion tables, we find many helmets are lying. These are the first new type of customers who are coming, the two-wheeler customers who want to upgrade to a four-wheeler," Banerjee stated, referring to the growing number of motorcycle and scooter riders seeking their first car.
The trend has strengthened following the Government's reduction of the GST on small cars announced on August 15th. The company is responding with financing schemes aimed at making the transition from two-wheelers to four-wheelers more accessible.
"We are working on very innovative finance schemes that you can upgrade at a very reasonable price, because everybody aspires to have a four-wheeler," Banerjee said. "We are trying to put India on wheels, being a market leader."
Chairman R. C. Bhargava highlighted the road safety context relating to this shift. "Selling cars for people who drive two-wheelers, who have the riskiest vehicle possible. The maximum road deaths are from people riding scooters."
Bhargava added that providing safer transportation alternatives aligns with Maruti Suzuki's stated purpose. "Maruti's objective is to serve India and its people. We were set up for that purpose. We believe that's our mission," he said.
Company representatives noted an increase in interest in small cars following the tax revision.
Production teams have worked on multiple Sundays to meet demand, and waiting periods remain in place for several models.
The rise in demand has also been observed beyond major metropolitan areas, including tier-2, tier-3, and rural markets.
"We have strength in the rural area. There was clear guidance from the top management to expand into the up-country markets. In the last 1.5 years, we have added more than 500 touch points," Banerjee stated.
However, company officials indicated that it is currently too early to determine the exact proportion of first-time buyers. "Only one month has passed, so you are not going to get a meaningful answer yet," Bhargava said. "If you want to know the share of small car buyers or first-time buyers, I think you will need to wait for at least six months."
The company further emphasised that if market demand indicates a requirement for smaller and more affordable vehicles, it would be prepared to develop such products, despite the potential for lower margins, in line with its objective of broadening access to personal transportation in India.