GST Reduction Sparks 41% Auto Sales Growth in Oct 2025: Govt

• India's auto sales rose 41.3% year-over-year in October 2025, reaching 40.55 lakh units.
• The surge in sales followed a government reduction in Goods and Services Tax (GST) rates on vehicles.
• GST for smaller vehicles (under specific engine and length criteria) was cut from 28% to 18%, effective September 22, 2025.
• Larger cars and SUVs now attract a 40% GST, a reduction from previous rates that included compensation cess.

Why It Matters: GST reduction made vehicles more affordable, driving a 41% auto sales surge.