Why Maruti Suzuki’s entry-level car sales jumped 100% in the first 4 months of FY27

Sales of entry-level cars rose 100% during the first four months of the financial year 2026-27, according to Maruti Suzuki MD & CEO Hisashi Takeuchi.

“Within the first 4 months of this financial year, the small cars, which fall under the 18% GST bracket, recorded a robust growth of about 30%, compared to nearly 20% growth in the 40% GST bracket. In fact, within the small cars, entry-level cars recorded a remarkable growth of almost 100%,” Takeuchi said at the 66th SIAM Annual Convention.

The GST rate cut last year made mobility accessible and affordable for several first-time buyers, the CEO of India’s biggest carmaker said.

Over the last many years, the small-car segment declined significantly as rising regulatory costs made car ownership difficult for many first-time buyers, Takeuchi said, adding that the impact of recent GST reforms has shown the power of affordability.

“For millions of Indian families, buying a car is still a major aspiration.  It gives them greater safety, convenience, and comfort. This is why affordability is important,” he explained.

The share of cleaner technologies has also seen a jump.

“If we look at the April to July period of last year, clean technologies like EVs, Hybrids and CNG contributed about 27% of industry sales. This year, it has increased to 32%,” said Takeuchi.

Earlier, Shailesh Chandra, president of SIAM, said the auto sector’s overall contribution to the Indian economy exceeded Rs 22.75 lakh crore, contributing to about 15% of the country’s GST collections.

“The industry provides direct and indirect employment to more than 30 million people and has a significant multiplier effect across related sectors and supports a vast supply chain network,” said Chandra.

The passenger vehicles segment recorded its highest-ever sales of 4.6 million units in FY26, with a growth of 7.9% over the previous year. Exports from this category also achieved their highest-ever levels, at 0.91 million units, registering a growth of 17.5% over the previous year.