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AUTO MARKET

GST 2.0 reshapes vehicle demand

FADA says India’s auto retail market grew strongly in the first year after the tax reform.

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THE NUMBER

Retail crossed three crore

3 crore

FADA counted more than three crore vehicle retail sales from October 2025 to August 2026.

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GROWTH PACE

Market growth neared twenty percent

Nearly 20%

The reported year-on-year increase was much faster than the comparable period before GST 2.0.

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WHO BENEFITS

Small vehicles led affordability

Eligible small cars and motorcycles up to and including 350cc moved from 28% GST to 18%.

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Check the real on-road cost

Tax, registration, insurance, finance and running costs all shape the final ownership bill.

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Get the full breakdown

Sources, numbers and what to watch next.

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Read: GST 2.0 anniversary: auto retail crosses 3 crore vehicles