New Delhi/Mumbai, Sept 22nd 2025: Discounts galore lured passenger car and two-wheeler customers into showrooms, while GST 2.0 reforms empowered MSMEs, marking a double milestone for India’s automotive market and business ecosystem on the first day of Navratri, which kicks off the festive demand for the auto industry. This festive cheer, paired with tax relief, is reflected not just on showroom floors but across MSMEs and industry circles.
Consumer Festive Frenzy
Maruti’s models, including the Alto K10, S-Presso, and Wagon-R, saw price reductions ranging from ₹79,600 to ₹1.29 lakh, resulting in discounts of up to 30%.
Tata Motors has maintained the Punch model’s price at ₹5.49 lakh, the same as its 2021 price, while the Tiago is now cheaper than it was at its 2020 launch. Premium models like the Harrier, Safari AdventureX, and Nexon Creative also became more affordable following GST cuts layered on existing deals.
MSMEs Gain Relief
GST 2.0 offers significant benefits for India’s 63 million MSMEs, many of which are instrumental in the EV startup ecosystem. Dr. Durairaj Kumarasamy from Manav Rachna International Institute of Research and Studies, Faridabad, along with research scholar Parthu Venkatesh P and student Tisha Virmani, noted, “With 90% of GST refunds now disbursed provisionally, MSMEs—including EV startups—will experience a significant easing of cash-flow challenges.”
They emphasized that automated GST registration enables new entrepreneurs to launch businesses in as little as three days, describing this shift as “transformative.” Additionally, they pointed out that each GST invoice acts as a passport to credit, helping MSMEs access financing that was previously hard to obtain. However, they raised concerns that only about 12% of MSMEs are fully digitalized, which may result in uneven benefits across states.
Industry Welcomes GST 2.0
Industry leaders welcomed the reforms. Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), referred to GST 2.0 as a “game changer” that releases capital, enables scaling up, and enhances the competitiveness of MSMEs both nationally and globally.
Rajiv Memani, President, CII congratulated the Hon’ble PM and the government for unveiling the “GST 2.0” reforms under the “GST Bachat Utsav”.CII President Rajiv Memani added that the cuts lessen compliance burdens, lower input costs, and stimulate domestic manufacturing.
Harsha Vardhan Agarwal, President of FICCI, stated that the GST rollout, combined with the government’s push for self-reliance (Swadeshi), fortifies India’s campaign for domestic production.
A Defining Moment
For consumers, the benefits are immediate, ranging from the ₹3.49 lakh S-Presso (down 30%) to the ₹9.99 lakh Tata Nexon Creative packed with premium features. For MSMEs and EV startups, GST 2.0 presents opportunities for growth capital, simplified compliance, and enhanced market positioning.
As the festive spirit coincides with substantial tax reform, India’s automotive market, EV ecosystem, and MSME’s are poised for a notable growth spurt, making this Navratri a pivotal moment in the country’s economic journey.
