Auto News
Automobile searches across India have surged sharply following GST cuts and festive demand, with two-wheeler interest up 306 percent and four-wheeler searches rising 193 percent. Data shows buyers are actively upgrading segments rather than delaying purchases, signalling renewed optimism in the Indian auto market.
GST cut drives 306% surge in automobile searches in India says JustDial report
Â
New Delhi: India’s automobile market is witnessing a strong digital resurgence, with a massive jump in online searches for two-wheelers and four-wheelers ahead of the festive season. According to a Justdial report, search activity for vehicles has grown at a pace not seen since the pre-pandemic period, driven largely by the recent GST rate reductions and renewed consumer confidence.
Industry analysts say this surge is an early sign of a wider market recovery. Instead of holding back on spending, buyers are actively exploring purchase options online, especially in metropolitan cities where affordability has improved and loan confidence has returned.
GST cuts drive digital demand
A comparison of search trends between mid-July to August 2025 and September to mid-October 2025 shows two-wheeler searches increasing by 306 percent pan-India, while four-wheeler searches jumped 193 percent during the same period. The spike reflects a direct correlation with the revised GST structure announced earlier this year.
Under the new tax rates:
- Small cars (up to 1,200cc petrol / 1,500cc diesel and under 4 metres in length) are now taxed at 18%, down from 28%
- Larger vehicles, including premium SUVs and sedans, face a flat 40% GST, offering clarity to buyers in the higher price range
This change has made entry-level models more affordable, while also boosting aspirations in the compact SUV and premium segment.
City-wise growth in automobile searches
| City | Two-Wheeler Search Growth | Four-Wheeler Search Growth |
|---|---|---|
| Mumbai | +174% | +125% |
| Delhi | +161% | +80% |
| Pune | +150% | +123% |
| Chennai | +143% | N/A |
| Hyderabad | +129% | N/A |
| Bangalore | +116% | +153% |
Two-wheelers lead the revival
Two-wheelers are witnessing the fastest rise due to lower ownership costs, cheaper financing, and growing demand in Tier-II and Tier-III cities. Electric scooters and commuter motorcycles are topping the charts as fuel savings become a long-term factor for urban and semi-urban buyers.
Four-wheelers, especially SUVs, have seen a surge in digital interest with compact SUVs dominating search rankings. The festive season has historically influenced big-ticket purchases in India, and this year seems to be no exception.
Buyer behaviour shifts from budget to aspirational
Market researchers say consumers are not just searching for cheaper options. Many are moving up segments—upgrading from hatchbacks to SUVs and exploring electric vehicles. Improved road infrastructure, rising disposable incomes, and policy support are shaping purchase decisions.
Additionally, automotive showrooms and digital platforms are reporting higher interest in models offering ADAS features, sunroofs, digital dashboards, and hybrid powertrains, suggesting that value is now being measured in features, not just price.
What this means for the auto industry
With search volumes climbing sharply across metros and smaller cities, industry insiders believe that the upcoming quarter may deliver the strongest sales numbers in over two years. If this trend holds, India’s automobile sector could be heading into a new growth cycle led by technology adoption, policy relief and changing consumer aspirations.
Next Article
Follow us on social media
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
