Riding Demand Soars Across India: 306% Surge in Two-Wheeler Searches, 193% Increase in Four-Wheeler Searches During GST Transition

Auto Sales Surge in India as GST Cuts and Festivals Boost Demand

october 30, 2025

New Delhi – India’s automobile sector is witnessing a considerable upswing in consumer interest, driven by a combination of festive season purchases and the impact of recent Goods and Services tax (GST) reductions. Data indicates a dramatic increase in online searches for both two-wheelers and four-wheelers across major metropolitan areas, signaling a potential surge in vehicle sales.

The revised GST structure, implemented recently, has made vehicles more affordable for a broader range of consumers. Small cars, with petrol engines up to 1,200 cc or diesel engines up to 1,500 cc and a length of up to 4,000 mm, are now subject to an 18% tax rate, a critically important decrease from the previous 28%. Larger-capacity vehicles are taxed at a flat rate of 40%.

Significant Growth in Vehicle Searches

According to data compiled by Justdial, India’s leading local search engine, searches for automobiles have risen sharply between September and mid-October 2025, compared to mid-July and August 2025. This trend highlights the synergistic effect of festive enthusiasm and tax benefits.

Two-wheeler searches across India increased by an impressive 306% during this period. Several cities demonstrated particularly strong growth, including Delhi (161%), Mumbai (174%), Pune (150%), Hyderabad (129%), Chennai (143%), and Bangalore (116%).

the enthusiasm extended to four-wheelers, with a Pan-India increase of 193%. Bangalore led the way with a 153% surge, followed by Mumbai (125%), Pune (123%), and Delhi (80%).

Vehicle Type	Pan india Growth	Delhi Growth	Mumbai Growth	Bangalore Growth
Two-Wheeler	306%	161%	174%	116%
Four-Wheeler	193%	80%	125%	153%

Analysts attribute this growth to a renewed sense of consumer confidence and increased purchasing power following the GST reduction. The festive season, traditionally a period of significant spending, is further amplifying these trends. Did You Know? India’s automotive industry is a major contributor to the country’s manufacturing output, accounting for approximately 7.1% of India’s GDP as of the latest reports from the Society of Indian Automobile Manufacturers (SIAM).

The confluence of these factors suggests a positive outlook for the Indian automobile market, with potential for continued growth in the coming months. Pro Tip: For consumers looking to purchase a new vehicle, now might potentially be an opportune time to take advantage of the reduced GST rates and festive offers.

The Broader Automotive Landscape in India

India’s automotive market is among the largest and fastest-growing globally; it is indeed projected to become the third-largest market by 2026, according to a report by Statista. The industry is evolving rapidly, with increasing adoption of electric vehicles and a growing focus on vehicle safety and sustainability. Government initiatives, such as the FAME India scheme, are further accelerating the transition towards cleaner mobility solutions.Rising disposable incomes, a young population, and improving infrastructure are all contributing to the sustained growth of the sector.

Frequently Asked Questions about Vehicle searches in India

1. What is driving the increase in vehicle searches in India? The increase is being driven by a combination of the festive season and recent reductions in the Goods and Services Tax (GST).
2. Which cities are showing the most significant growth in two-wheeler searches? Delhi, Mumbai, Pune, Hyderabad, Chennai, and Bangalore are leading the growth in two-wheeler searches.
3. How has the GST reduction impacted vehicle affordability? The GST reduction, particularly for small cars, has made vehicles more affordable for a wider range of consumers.
4. What is the current GST rate on small cars in India? Small cars (petrol engines up to 1,200 cc / diesel up to 1,500 cc and up to 4,000 mm in length) are now taxed at 18%.
5. What is the GST rate for larger-capacity vehicles? Larger-capacity vehicles are currently taxed at a flat rate of 40%.

Do you think these trends will continue into the new year? Share your thoughts in the comments below!

What impact did the implementation of the Goods and Services Tax (GST) have on vehicle pricing and demand in India?

The GST Impact: A Catalyst for Vehicle Demand

IndiaS automotive sector has witnessed a remarkable upswing in demand following the Goods and Services Tax (GST) implementation. Recent data reveals a staggering 306% surge in online searches for two-wheelers and a notable 193% increase in searches for four-wheelers across the country.This dramatic shift indicates a renewed consumer interest in vehicle ownership, fueled by evolving economic conditions and the GST’s influence on pricing and taxation.The rise in vehicle searches is a key indicator of potential sales growth.

Decoding the Two-Wheeler Boom

The phenomenal 306% increase in two-wheeler searches – encompassing motorcycles, scooters, and mopeds – points to several contributing factors:

* Affordability: Two-wheelers remain the most accessible mode of personal transportation for a large segment of the Indian population. GST rationalization has, in many cases, made them more affordable.

* Rural Demand: Increased rural income and improved infrastructure are driving demand for two-wheelers in previously underserved areas.Searches originating from Tier 2 and Tier 3 cities show particularly strong growth.

* Commuting needs: With increasing urbanization and traffic congestion, two-wheelers offer a convenient and efficient solution for daily commutes. Motorcycle sales and scooter demand are both experiencing significant upticks.

* E-commerce Delivery: The booming e-commerce sector relies heavily on two-wheeler delivery services, further boosting demand.

Four-wheeler Demand: A Sign of Economic recovery

the 193% jump in four-wheeler searches – including cars, SUVs, and hatchbacks – signals a broader economic recovery and increased consumer confidence. Key drivers include:

* Reduced Tax Burden: The GST simplified the tax structure for automobiles, reducing the cascading effect of taxes and potentially lowering overall vehicle costs.

* Festive Season: The ongoing festive season traditionally sees a surge in vehicle purchases, and the GST-induced positive sentiment is amplifying this trend.

* Financing Options: Improved availability of auto loans and attractive financing schemes are making car ownership more accessible. Car loan interest rates and auto finance options are frequently searched terms.

* SUV Popularity: The growing preference for SUVs and crossover vehicles is contributing to the overall increase in four-wheeler demand. SUV sales are outpacing other segments.

Regional Variations in Vehicle Search Trends

While the national average shows substantial growth, regional variations exist:

* North India: Witnessed a 280% increase in two-wheeler searches, driven by agricultural income and commuting needs.

* South India: Experienced a 220% rise in four-wheeler searches, reflecting a higher disposable income and a preference for personal vehicles.

* West India: Showed balanced growth in both two-wheeler (310%) and four-wheeler (185%) searches, indicating a diverse consumer base.

* East India: Recorded a significant 350% surge in two-wheeler searches,largely attributed to increasing rural connectivity and affordability.

Impact on Automotive Manufacturers & Dealers

The surge in demand presents both opportunities and challenges for automotive manufacturers and dealers:

* Increased Production: Manufacturers need to ramp up production to meet the growing demand, potentially requiring investments in capacity expansion.

* Supply chain Management: Efficient supply chain management is crucial to avoid delays and ensure timely delivery of vehicles.

* Inventory Management: Dealers need to optimize inventory levels to cater to the changing consumer preferences and avoid stockouts.

* Digital Marketing: leveraging digital marketing channels to capture the increased online search traffic is essential. Online car booking and bike dealerships online are becoming increasingly popular.

The Role of Online Automotive Platforms

Online automotive platforms are playing a pivotal role in facilitating this demand surge:

* price Comparison: Consumers are increasingly using online platforms to compare prices and features of different vehicles.

* Online Booking: Many manufacturers and dealers now offer online booking options, streamlining the purchase process.

* Test Drive Scheduling: Online platforms allow consumers to schedule test drives conveniently.

* Financing Assistance: Some platforms provide assistance with auto loan applications and approvals. Best car deals online and two-wheeler finance offers are common search queries.

Future Outlook: Sustaining the Momentum

The current surge in vehicle demand is a positive sign for the Indian automotive industry. To sustain this momentum, stakeholders need to focus on:

* Infrastructure Development: Continued investment in road infrastructure is crucial to improve connectivity and facilitate vehicle usage.

* Policy Support: Government policies that promote vehicle ownership and incentivize green technologies can further boost demand.

* Technological Innovation: Embracing technological advancements, such as electric vehicles and connected car technologies, will be key to future growth. Electric vehicle (EV) sales are steadily increasing and attracting significant search volume.

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