How much did GST cuts fuel record demand for cars, smartphones, appliances

White Goods (Representative Picture)

While the benefits of the GST reforms have not yet been calculated in fiscal terms and it is yet to be seen how much of the benefits are passed on to consumers, Diwali 2025 has benefited shoppers immensely. The biggest beneficiaries were those who spent money on white goods such as cars, refrigerators, washing machines and smartphones. Automobile and electronics segments recorded the fastest sales just before Diwali. It can be measured by Maruti Suzuki’s sales. India’s largest automaker sold nearly 325,000 vehicles between September 22 (the date when the Navratri festival begins) and October 18 (Dhanteras), an increase of 50% compared to the same period last year. The company received 450,000 reservations last month, 94,000 of which were small cars.

Growth of the automotive industry in India

Confirming this, senior executive (marketing and sales) Partho Banerjee told ET, “We are getting around 14,000 bookings every day. While demand is strong across categories, it is more for vehicles in the 18% GST group rather than 40%, indicating positive consumer sentiment in the core market.” Similarly, on Dhanteras day alone, Hyundai Motor India sold 14,000 units, up 20% from last year.

Eid sales of Maruti Suzuki, Tata Motors

Tata Motors is estimated to deliver more than 25,000 vehicles during Dhanteras-Diwali; This represents a growth of 30% compared to the same period last year. “Vehicles have become more affordable after tax cuts,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and president of the Association of Indian Automobile Manufacturers. he said. He added: “A lot of cars have come into the budget of customers who had not previously considered buying a vehicle. Many other customers are opting for a higher version for the same price (over a lower version before).

Smartphone sales festive season

According to Counterpoint Research, holiday sales of smartphones increased by 16-18% in value and 9-10% in volume. Initially, 8% value increase and 4% volume expansion were predicted. Confirming this, Counterpoint research director Tarun Pathak said there was some slowdown after the initial online sales around Navratri, but demand has picked up again in the last five-six days, especially in offline retail.

Sales of other white goods such as televisions, air conditioners, refrigerators and washing machines increased manifold during the festive period, but most of them did not experience a GST cut. Godrej Appliances confirmed that festive sales increased by over 50% in value and 45% in volume. Similarly, Haier’s sales increased by more than 45%. For both companies, sales growth this festive season was the fastest in history.