GST Cut Sparks Triple-Digit Rise in Online Vehicle Searches

GST Cut Sparks Triple-Digit Rise in Online Vehicle Searches

Issue: To analyze the immediate consumer sentiment and purchasing intent across India’s automotive market following the Goods and Services Tax (GST) rate reduction on vehicles.

Facts:

• The GST rate on automobiles (two- and four-wheelers) was recently reduced.
• The demand survey was conducted by the local business and consumer data platform, Justdial, comparing the period between September and mid-October 2025 with the mid-July to August period.

Decision:

The Justdial report confirmed a massive and immediate rebound in consumer interest, showing a sharp rise in online searches for both two- and four-wheelers nationwide.

Key TakeDowns:

• Two-Wheeler Searches Soar: Nationwide searches for two-wheelers rose by 306% compared to the previous period. This suggests that the GST cut made bikes and scooters significantly more affordable, translating into immediate retail interest for entry-level models.
  • City Leaders: Mumbai (174% growth) and Delhi (161% growth) led the surge in two-wheeler search activity.
• Four-Wheeler Demand Jumps: Online searches for four-wheelers climbed 193% nationally. This highlights strong urban demand for compact and mid-size cars.
  • City Leaders: Bengaluru (153% growth), Mumbai (125% growth), and Pune (123% growth) drove the four-wheeler interest.
• Sentiment Rebound: The dramatic spike in digital activity confirms that the GST price benefit was successful in encouraging prospective buyers to revisit postponed purchase plans ahead of the festive season.
• Digital Trends: The data underscores that consumers are increasingly comparing models, prices, and financing options online before visiting showrooms, making digital search trends a reliable indicator of consumer sentiment following policy changes.