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Diwali Cheer for Buyers? Govt Mulls GST Cut on Cars and Two-Wheelers
Primus In News
Diwali Cheer for Buyers? Govt Mulls GST Cut on Cars and Two-Wheelers
19-08-2025

Nikhil Dhaka, Vice President, Primus Partners, highlighted that a GST cut from 28% to 18% on cars and two-wheelers could be the single biggest festive boost for the auto sector in years. He said that mass-market buyers would benefit immediately, with entry-level vehicles becoming cheaper by ₹40,000–₹60,000 and mid-size SUVs like the Hyundai Creta seeing savings of over ₹1.5 lakh. He emphasized that the larger impact lies in unlocking pent-up demand among middle- and lower-income consumers, which would drive volumes, localisation, and job creation across the automotive value chain.

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