GST Cuts Drive Luxury Car Upgrades Amid Festive Surge

The festive season saw a surge in car sales, fueled by GST reductions, but a recent study highlights an intriguing trend. Around 80% of buyers, rather than saving the tax relief, are using it to purchase higher-end vehicles or invest in premium accessories, according to the market research platform SmyttenPulse AI.

The 'Post GST Car Buying Behaviour Trends' survey, conducted among over 5,000 individuals in October 2025, shows SUVs leading the charge as the preferred choice. Simultaneously, an increasing number of consumers are considering electric vehicles, driven by environmental consciousness, even as battery and cost challenges persist.

Financial confidence appears to be on the rise, with more than half of the surveyed buyers willing to pay higher down payments or extend loan tenures. This trend reflects trust in policy and industry incentives, according to Swagat Sarangi, cofounder of Smytten PulseAI.