TL;DR
Indian car buyers are leveraging GST cuts for vehicle upgrades and showing increased interest in EVs, with SUVs remaining a top preference, according to a new study.
A recent SmyttenPulse AI study indicates that Indian car buyers are increasingly prioritizing vehicle upgrades following GST rate reductions. The October 2025 survey, spanning Tier-1, 2, and 3 cities, found that a significant 79% of buyers are reinvesting their GST savings into higher-end models or premium add-ons rather than simply pocketing the difference. This 'upgrade wave' signals a rising aspiration among middle-class consumers, moving from smaller cars to compact or full-size SUVs.
The report, titled 'Post-GST Car Buying Behaviour Trends,' also highlights a strong and growing curiosity for electric vehicles (EVs), even though concerns about battery life and charging infrastructure persist. SUVs continue to dominate market preference, with over 60% of buyers planning to upgrade within the same brand family to higher variants. This shift underscores a renewed consumer confidence and a strategic realignment in the Indian automotive market.
