GST Bachat Utsav: Mumbai Sees Festive Vehicle Sales Surge After PM Modi's Next Generation GST Reforms
The biggest boost came from reduced GST rates. Small petrol and CNG cars (with engine capacities up to 1200cc and length under 4 meters) previously attracted 28% GST and a 1% cess, totaling 29% tax. Under the new reforms, the total tax burden has been slashed to 18%, translating to significant savings.
Mumbai Sees Festive Vehicle Sales Surge After GST Reforms |
The rollout of Prime Minister Narendra Modi’s Next Generation GST Reforms has sparked a festive shopping spree in Mumbai, leading to a significant spike in vehicle sales during the Navratri and Dussehra period. Dubbed the "GST Savings Festival", the tax reforms came into effect from the first day of Navratri and brought substantial cost savings for buyers of two-wheelers and four-wheelers.
As a result, a total of 10,541 vehicles — including two-wheelers and four-wheelers and others — were sold across Mumbai during the festive window, marking a sharp rise from 9,063 vehicles sold during the same period last year.
The biggest boost came from reduced GST rates. Small petrol and CNG cars (with engine capacities up to 1200cc and length under 4 meters) previously attracted 28% GST and a 1% cess, totaling 29% tax. Under the new reforms, the total tax burden has been slashed to 18%, translating to significant savings.
Two-wheelers with engine capacity below 350cc have also benefited from a 10% tax cut, now taxed at 18% instead of 28%, making them far more attractive to buyers.
The reforms, combined with increasing awareness and incentives for electric mobility, also fueled enthusiasm for electric vehicles (EVs), which saw heightened interest from buyers across the city.
On Dussehra (2nd October), a massive crowd gathered at vehicle dealerships across Mumbai and its suburbs. Customers queued up throughout the day to take delivery of their new vehicles on the auspicious day.
"As people seek more comfortable and flexible modes of transportation, especially during festive seasons seen as auspicious for big-ticket purchases, personal vehicle demand continues to rise,” said a transport industry expert. “The GST cuts have accelerated this trend.”
To manage the rush, dealerships deployed extra staff, opened special delivery counters, and provided dedicated computerized registration desks. Brand-new vehicles, decorated with flowers and balloons, rolled out of showrooms in celebratory fashion.
“Customers usually coordinate delivery with dealerships for auspicious days like Dussehra,” said a local automobile dealer, “but this year, we also saw a strong push for electric vehicles.”
RTO-Wise Vehicle Registration Data: 2025 vs 2024
Tardeo RTO
2024: 832 four-wheelers, 1,928 two-wheelers
2025: 835 four-wheelers, 2,243 two-wheelers
Wadala RTO
2024: 662 four-wheelers, 1,513 two-wheelers
2025: 723 four-wheelers, 1,687 two-wheelers
Andheri RTO
2024: 523 four-wheelers, 1,076 two-wheelers
2025: 554 four-wheelers, 1,285 two-wheelers
Borivali RTO
2024: 806 four-wheelers, 1,723 two-wheelers
2025: 850 four-wheelers, 2,364 two-wheelers
Dussehra Day Registrations – 2nd October, 2025
Borivali RTO: 33 four-wheelers (vs 26 last year), two-wheeler data not available
Andheri RTO: 19 four-wheelers, 88 two-wheelers (vs 24 and 125 last year)
Kalyan and Vasai RTO Data
Kalyan recorded 4,080 new vehicle registrations from September 22 to October 2, including 2,771 two-wheelers and 1,042 cars.
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