From SUVs to tyres, from farmers to futurists, the industry hails a reform that promises both speed bumps and smooth rides
New Delhi: India’s tax system has just undergone a chassis upgrade. The Government’s landmark second-generation GST reforms have rolled out like a shiny new model — promising better mileage for the economy, smoother handling for businesses, and affordability that might finally get even your cautious uncle to book that hatchback he’s been eyeing since 2018.
Toyota: Fueling Confidence, Eyeing Cleaner Roads
Swapnesh R. Maru, Deputy Managing Director, Toyota Kirloskar Motor, parked his thoughts with gratitude:
“Beyond empowering the common man, this reform is poised to enhance market confidence, strengthen consumer sentiment and stimulate investments. The relief extended to smaller vehicles will enhance mobility for the common man while stimulating growth across the automotive sector.”
But he didn’t just stop at the applause. With headlights firmly fixed on the future, Maru nudged policymakers toward greener lanes: “It is crucial that cleaner and greener technologies are also promoted and incentivised… so that these are preferred over the conventional petrol and diesel vehicles.”
Hyundai: 60% Cars Now Taxed at 18%, Happiness Tax-Free
Mr. Unsoo Kim, Managing Director, Hyundai Motor India, called the reform “revolutionary” while revealing that 60% of Hyundai’s ICE cars will now enjoy the lower 18% GST slab. Translation: more Santros and Cretas rolling out of showrooms with a lighter tax tag.
“This step enhances buoyancy, strengthens consumer confidence and aligns with Make in India,” he said, hinting that the festive season may now require extra sales staff — and perhaps more parking space in family homes.
Mahindra: From Farms to Fast Lanes
Rajesh Jejurikar, ED & CEO – Auto and Farm Sector, M&M, hailed the move as “far-reaching,” ensuring tractors become more affordable for farmers while SUVs feel less like luxury tanks. He also cheered the retention of 5% GST on EVs, calling it a “critical enabler of India’s clean mobility vision.”
Mahindra Group CEO & MD Dr. Anish Shah put it in grander terms: “This marks a defining moment in building a simpler, fairer tax system. It simplifies compliance, expands affordability, and energises consumption — in line with the PM’s vision of Viksit Bharat @2047.” Or in simpler showroom language: fewer forms, more forms of transport.
Kinetic: Two-Wheeler Wisdom
Ajinkya Firodia, Vice Chairman of Kinetic India, gave the reforms a green signal but added a gentle brake-tap: “Our humble request is that the electric vehicle sector continues to be kept in special focus. To ensure higher penetration of EVs, especially two-wheelers, supportive schemes must continue.” Translation: don’t let India’s scooters run out of charge on the policy highway.
Tata Motors: Vision with a Plug
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles & EV, praised the GST cuts on small cars and lauded the 5% rate on EVs as a “forward-looking move” that reinforces long-term policy stability. “This will accelerate EV adoption, strengthen domestic manufacturing, and propel India toward a cleaner, smarter mobility future.” Expect more Nexons with charging cables than petrol bills.
CEAT: The Tyres Finally Catch a Break
For once, it’s not just the cars getting the limelight. Arnab Banerjee, MD & CEO of CEAT, celebrated the cut in tyre GST from 28% to 18%, and tractor tyres dropping to 5%. “This progressive step will benefit customers across commercial, agricultural, and passenger vehicle segments, while supporting rural mobility,” he said. Or as the industry might put it: the wheel of fortune just spun in their favour.
Kia’s Applause: “Next-Gen GST, Next-Gen Driving”
Kia India rolled out its red carpet of gratitude, praising the visionary reforms as a “citizen-centric evolution” that will simplify life and, more importantly, car-buying math. “This is not just about numbers on an invoice,” Kia said, “it’s about putting more people behind the wheel with confidence, comfort, and maybe a cheeky grin when they see the revised EMI.”
Škoda-Volkswagen’s Take: Small Cars Smile, Supercars Still Sparkle
Piyush Arora, CEO & MD of Škoda Auto Volkswagen India Pvt Ltd, called it a long-overdue step that finally makes small cars less of a dream and more of a driveway reality. With small cars at 18% GST, “first-time buyers will breathe easier,” he said, adding that the 40% slab for premium and luxury wheels “at least keeps the Lamborghini customers clear about which organ they’ll be selling.”
Arora also reminded us that with a garage full of brands from Škoda to Bentley, clarity in taxation ensures customers—from hatchback hunters to hypercar dreamers—make their decisions with fewer furrowed brows.
The Legal Spin: Hydrogen Gets the Holy Discount
Ashish Suman, Partner at JSA Advocates & Solicitors, spotted the headline act: hydrogen cars sliding from 12% GST down to just 5%. “It’s the government’s way of saying: Hydrogen isn’t just water with ambition, it’s the fuel of the future,” he noted. With EVs steady at 5% and hybrids now lighter at 18%, the taxman seems ready to host a buffet of clean tech choices—because why bet on one horse when you can own the whole stable?
FADA President, Mr. C.S. Vigneshwar, remarked:
“The 56th GST Council meeting is truly a landmark for India’s automobile retail sector. We wholeheartedly welcome these bold and forward-looking reforms that simplify the tax framework, rationalise rates for mass mobility, and reflect consensus across all States. This decisive step will enhance affordability, fuel demand, and strengthen the inclusivity of India’s mobility ecosystem.
We extend our gratitude to the Hon’ble Prime Minister, Finance Minister, and the GST Council for their unanimous and courageous decision. As we approach the festive season, seamless and glitch-free implementation will be critical to ensure that the benefits directly reach customers. One area requiring early clarification is the levy and treatment of existing cess balances in dealers’ books, so that the transition remains free of ambiguity.
FADA is fully committed to working hand-in-hand with the Government and the GST Council to make GST 2.0 a benchmark reform — simple, transparent, and growth-driven for both industry stakeholders and consumers.”
Road Ahead
The industry’s chorus is clear: the GST reform is no mere paperwork shuffle — it’s a turbocharged boost to affordability, accessibility, and sustainability. Whether it’s a farmer buying a tractor, a city dweller eyeing a small car, or a millennial convincing parents that an EV is “actually cheaper in the long run,” this reform promises to grease the wheels of India’s economy.
After all, in a country where traffic is inevitable, at least the taxes just got lighter.
