GST 2.0 made two-wheelers and cars the biggest winners on price relief: Report

Two-wheelers and cars emerged as the categories where Indian consumers reported the strongest price relief following GST 2.0, according to The Great Indian Wallet 4.0 – 2026. The study found that 26% of consumers reported lower two-wheeler prices, while 25% said car prices had fallen, putting big-ticket purchases at the forefront of perceived GST benefits.

Two-wheelers lead GST-related relief

Among the categories tracked by the study, two-wheelers recorded the highest share of consumers reporting lower prices at 26%. Cars followed closely at 25%, suggesting that GST-related price changes were particularly visible to consumers in the automobile segment.

The study's findings indicate that the impact was not restricted to vehicles. Smartphones and home appliances were next, with 22% of consumers reporting lower prices in each category.

Medicines and healthcare also saw substantial reported relief, at 21%, while food, groceries and other daily-use products recorded 19%.

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Housing materials registered the lowest reported price relief among the categories covered, but even here 18% of consumers reported lower prices. The study therefore found reported price relief across every category it tracked.

Source: The Great Indian Wallet 4.0 – 2026.

Big-ticket purchases

The pattern is notable because the largest reported reductions were concentrated in high-value purchases. Two-wheelers and cars topped the list, followed by consumer electronics and appliances.

The study also found differences in how consumers perceived the price changes. Men reported stronger price relief than women across nearly every category. For two-wheelers, 28% of men reported lower prices compared with 19% of women, while for cars the corresponding figures were 26% and 17%.

The report does not suggest that the price impact was uniform across India. There were significant differences by city tier and region.

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Tier-1 cities

Tier-1 cities experienced the strongest reported impact from GST 2.0 across several categories. The study says Tier-1 consumers led on two-wheelers, smartphones and cars, while Tier-2 cities consistently reported the lowest levels of relief.

Regional differences were also pronounced. The East and West emerged as the strongest beneficiaries of reported price relief. The East led on food and groceries, smartphones and medicines, while the West recorded the strongest figures for two-wheelers and cars.

The South, by contrast, reported the least relief across nearly every category tracked by the study. Consumers in the region reported just 13% relief for food and groceries and 13% for smartphones, roughly half the national figures cited in the study.

What households did with the relief

The study also examined what consumers did after experiencing GST-related price relief. 61% of respondents reported no change in their spending or saving behaviour, suggesting that households largely maintained existing financial routines.

Among the 39% who changed their behaviour, 12% said they saved more, while another 12% spent more on food quality. A further 9% spent more on children's education and 7% on health.

The findings suggest that GST 2.0's perceived impact was not simply about encouraging consumption. For many households, the reported price relief translated into greater financial room for saving and essential areas such as food, education and healthcare.

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