Maruti Suzuki banks on GST 2.0 amid soft demand, calls reform ‘very positive’

Maruti Suzuki has expressed optimism over the upcoming rollout of GST 2.0, calling it a major reform that could provide a strong boost to the Indian economy. During a recent sales call, the company said it is looking forward to the government’s announcement, terming the expected changes “very positive" for the market.

The reforms, announced by Prime Minister Narendra Modi on August 15th, 2025, are being described as the most significant tax overhaul since the introduction of GST in 2017. On the subject, Maruti Suzuki’s Senior Executive Officer (Marketing & Sales), Partho Banerjee, said the changes would likely stimulate retail demand, calling GST 2.0 a “major reform for the country."

Meanwhile, India’s largest carmaker reported domestic sales of 1,44,145 units in August 2025, a 7% decline from 1,55,779 units sold in the same month last year. The company posted year-on-year drops across most categories, except for compact cars. The compact segment which includes models such as the Baleno, WagonR, Swift, Dzire, and Ignis — sold 59,597 units in August, marginally down from 58,051 units a year earlier. However, entry-level mini car sales continued their downward slide, falling to 6,853 units compared to 10,648 units in August 2024.

Despite the dip, Maruti noted that bookings in August 2025 remained healthy, with a pending order book of 1.5 lakh units and around 50 days of inventory across its dealer network.

Industry-wide, however, purchase sentiment has softened. As BMW Group India’s new President and CEO recently told HT Auto, many consumers have adopted a “wait-and-watch" approach amid expectations from GST 2.0. Reflecting this caution, the country’s top four carmakers all recorded year-on-year declines in wholesale numbers in August 2025.

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