SUV Boom After GST 2.0: Tata Motors Predicts 10% Car Market Growth by 2026

• Tata Motors Passenger Vehicles (TMPV) MD and CEO Shailesh Chandra expects India's passenger vehicle sales to grow by 10% in 2026, driven by GST rate cuts and accelerated SUV demand.
• The company launched an updated version of its compact SUV Punch, priced from Rs 5.59 lakh, and aims to surpass industry growth this year with new launches including Sierra, Safari, and Harrier petrol variants.
• Chandra noted that post-GST reforms, the industry saw over 20% growth, with double-digit growth sustaining for several months, indicating an optimistic outlook.
• SUVs, particularly mid-size, compact, and sub-compact segments, have significantly driven PV industry growth, with the sub-compact segment being the biggest beneficiary of GST 2.0.
• The sub-compact SUV segment, including Punch, has seen tremendous growth (nearly 70-80% in Punch sales) due to a 10% GST reduction, and is expected to continue expanding.

Why It Matters: Tata Motors forecasts a 10% growth in India's car market by 2026, fueled by GST cuts and strong SUV demand.