Have Customer Inquiries Increased by 15-20% After Maruti Suzuki's Rate Cut?
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Synopsis
A recent report reveals that customer inquiries for cars have surged by 15-20% following Maruti Suzuki's announcement of significant price cuts. This shift in the automotive market is expected to propel the passenger vehicle segment's growth during the upcoming festive season, marking a notable change in consumer behavior.
Key Takeaways
- 15-20 percent surge in customer inquiries.
- First-time buyers increased by 5-7 percent.
- Double-digit growth expected in the passenger vehicle segment.
- Significant price reductions on entry-level models.
- New GST rate for small cars is 18 percent.
New Delhi, Aug 19 (NationPress) Customer inquiries for automobiles have risen notably by 15-20 percent across various segments following the announcement from Maruti Suzuki India (MSIL) regarding the full transfer of GST 2.0 benefits, according to a report released on Friday.
Dealers are experiencing a notable increase in inquiries, both online and in-person, especially for entry-level models such as K10, Celerio, S-Presso, and Wagon R in Tier-1 cities, as detailed in an HSBC Global Investment report.
The report indicates that the proportion of first-time buyers has surged by 5-7 percent in total bookings up to this point.
The premium hatchback segment, including models like Swift and Baleno, is also witnessing a promising rise.
The report emphasizes that the passenger vehicle (PV) sector is projected to experience double-digit growth year-on-year during the forthcoming festive season, in contrast to the single-digit growth anticipated prior to the GST cut announcement.
MSIL has implemented substantial price reductions on its entry-level range, exceeding the effects of the GST cut.
"MSIL has enacted price reductions of 11-21 percent on its entry-level range, 9-11 percent on premium hatchbacks, and up to 8 percent on Brezza, surpassing the impact of the GST cut (3.5-8 percent)," the report highlighted.
On Thursday, Maruti Suzuki revealed a price reduction across its entire vehicle lineup, enabling consumers to fully benefit from the recent decrease in GST rates on automobiles.
Entry-level models are receiving the most significant price cuts, with the Alto K10 and S-Presso experiencing reductions of up to Rs 1.07 lakh and Rs 1.29 lakh, respectively.
Other hatchbacks, including the Celerio, Wagon-R, and Ignis, will also enjoy substantial savings ranging from Rs 71,300 to Rs 1.29 lakh.
The prices of small SUVs will also be reduced.
The GST Council has approved a tax structure of 5 and 18 percent, eliminating the previous four-slab system (5, 12, 18, and 28 percent).
By establishing GST rates at 18 percent for small cars and 40 percent for larger or luxury vehicles, this reform simplifies the tax framework and removes the earlier compensation cess. Electric vehicles continue to benefit from a favorable 5 percent GST rate.
Point of View
I believe that the recent price reductions by Maruti Suzuki not only enhance consumer affordability but also stimulate the automotive market in India. This move is timely, especially ahead of the festive season, providing a much-needed boost to both dealers and buyers. Our commitment remains to keep our audience informed about such significant developments.
NationPress
20/09/2025
Frequently Asked Questions
What percentage increase in customer inquiries was reported?
Customer inquiries for cars have increased by 15-20 percent across various segments.
Which car models are experiencing the highest surge in inquiries?
Entry-level cars such as K10, Celerio, S-Presso, and Wagon R are seeing the most inquiries.
What is the expected growth for the passenger vehicle segment?
The passenger vehicle segment is expected to grow by double digits year-on-year during the upcoming festive season.
How much were the price cuts on Maruti Suzuki's entry-level models?
Price cuts on entry-level models range from 11-21 percent.
What is the new GST rate for small cars?
The new GST rate for small cars is 18 percent.
