Boosted by the new Goods and Services Tax (GST) 2.0 reforms and strong festive demand, companies like Hyundai Motor India, and Tata Motors are expecting record car sales on Dhanteras.
This year, Dhanteras is being celebrated over two days because the Trayodashi Tithi starts at 12:18 PM on October 18 and ends at 1:51 PM on October 19, covering two calendar days. The festival is observed on Krishna Trayodashi, the 13th day of the dark phase of the moon in the Hindu month of Kartik.
With the onset of festivities, brands like Maruti Suzuki look forward to delivering around 51,000 cars in two days. Hyundai has projected a figure of around 14,000 cars during the Dhanteras-Diwali period.
Speaking on the pronounced sales increase, Mr. Amit Kamat, Chief Commercial Officer, Tata Motors Passenger Vehicles Ltd., said:
“This year, Dhanteras and Diwali deliveries are spread over two to three days in line with the auspicious mahurats. Overall demand has been robust, and the GST 2.0 reform has further provided positive momentum. We expect to deliver over 25,000 vehicles during this period.”
Beyond Tata, Mr. Tarun Garg, Whole-time Director & COO, HMIL, spoke on the Dhanteras deliveries and highlighted that:
“This year, Dhanteras deliveries are spread across multiple days because of it being a Saturday. We are witnessing strong customer demand, with deliveries expected to be around 14,000 units, approximately 20% higher than last year. The positive momentum is driven by the festive spirit, a buoyant market environment, and the encouraging impact of GST 2.0 reforms.”
Under GST 2.0, smaller cars (sub-4 metre models) now fall under the 18% tax slab, and the compensation cess on automobiles has been completely removed. Previously, these cars were taxed at 28% GST plus a compensation cess of 1% to 3%, making the total tax burden between 29% and 31%.
Larger vehicles and luxury cars are now taxed at 40%. Under GST 1.0, they faced a total tax of 43% to 50%, which included 28% GST and an additional compensation cess of 15% to 22%.
| Category | GST 2.0 Rate | Earlier Rate (GST 1.0 + Cess) |
|---|---|---|
| Small Cars (Sub-4m) | 18% | 28% + 1–3% Cess (Total: 29–31%) |
| Bigger / Luxury Cars | 40% | 28% + 15–22% Cess (Total: 43–50%) |
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