<p>New Delhi: Retail sales of vehicles surged by 40.5% year-on-year to hit a record monthly number of 40.23 lakh in October led by strong demand boosted by reduction in GST rates, industry data showed on Friday.</p><p>A record 31.49 lakh two-wheelers were sold during the month of October, which is 51.76% higher when compared with the same month last year. Passenger vehicle sales soared by 11.35% to 5.57 lakh units during the month under review, as per data released by the Federation of Automobile Dealers Associations (FADA).</p><p>“After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound — almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels,” said FADA President C S Vigneshwar.</p><p>The GST Council at its meeting held on September 3 decided to significantly lower indirect taxes on a wide range of goods, including vehicles and auto parts. GST on small cars and motorcycles has been reduced to 18% from the earlier 28%. While the decision was announced on September 3 it came into effect from September 22. The sales of vehicles and other goods picked up after September 22.</p>.GST rate cut boosts Bajaj Finance festive loans by 27%.<p>“The introduction of GST 2.0 proved transformational — lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first time buyer. This affordability boost, timed perfectly with the festive season, turned sentiment into action,” Vigneshwar said.</p><p>Near 52% surge in sales of two-wheelers was supported by rural demand, GST reductions, and the festive rush. “Dealers reported stronger footfalls and better sentiment leading to extremely high conversion,” he said.</p><p>Favourable monsoon boosted rural demands. Rural sales grew over three times faster than urban.</p>
<p>New Delhi: Retail sales of vehicles surged by 40.5% year-on-year to hit a record monthly number of 40.23 lakh in October led by strong demand boosted by reduction in GST rates, industry data showed on Friday.</p><p>A record 31.49 lakh two-wheelers were sold during the month of October, which is 51.76% higher when compared with the same month last year. Passenger vehicle sales soared by 11.35% to 5.57 lakh units during the month under review, as per data released by the Federation of Automobile Dealers Associations (FADA).</p><p>“After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound — almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels,” said FADA President C S Vigneshwar.</p><p>The GST Council at its meeting held on September 3 decided to significantly lower indirect taxes on a wide range of goods, including vehicles and auto parts. GST on small cars and motorcycles has been reduced to 18% from the earlier 28%. While the decision was announced on September 3 it came into effect from September 22. The sales of vehicles and other goods picked up after September 22.</p>.GST rate cut boosts Bajaj Finance festive loans by 27%.<p>“The introduction of GST 2.0 proved transformational — lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first time buyer. This affordability boost, timed perfectly with the festive season, turned sentiment into action,” Vigneshwar said.</p><p>Near 52% surge in sales of two-wheelers was supported by rural demand, GST reductions, and the festive rush. “Dealers reported stronger footfalls and better sentiment leading to extremely high conversion,” he said.</p><p>Favourable monsoon boosted rural demands. Rural sales grew over three times faster than urban.</p>