The Indian automobile market maintained relatively rapid growth in the first half of fiscal year 2026. GST tax reform, financing support, and holiday spending all contributed to a recovery in market demand. However, Chairman of the Indian Automobile Manufacturers Association, Shanu Agarwal also warned that as the comparative base increases, the growth rate of the Indian car market in the second half of the fiscal year may slow down, and factors such as inflation, financing costs, and rising raw material prices will also put pressure on them. The data shows that in the third quarter of this year, the wholesale sales volume of passenger cars in India reached 1.36 million units, an increase of 30.7% over the previous year. Agarwal believes that the GST 2.0 reform has improved the affordability of consumers to buy cars. Coupled with resilient demand in urban and rural markets, automobile financial support, and holiday spending, it has jointly boosted market growth. Among them, the recovery of India's entry-level car market is particularly noteworthy. In September 2025, India implemented the GST 2.0 tax reform, and the tax rate for some automobile products was lowered. Car companies then adjusted terminal sales prices, lowering the threshold for consumers to buy cars. In the first half of fiscal year 2026, sales of entry-level passenger cars with a length of less than 3.6 meters increased 86% year over year.

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