TL;DR
Stellantis India CEO forecasts over 5% growth for the Indian car industry, attributing the surge to recent GST 2.0 reforms that boosted small car demand and overall sales.
According to a top Stellantis India official, the Indian passenger car industry is expected to achieve over 5 percent volume growth, largely driven by the recent GST 2.0 reforms. These reforms have particularly stimulated demand for small cars, encouraging consumers to transition from two-wheelers to four-wheelers.
Shailesh Hazela, Managing Director and CEO at Stellantis India, noted that prior to GST 2.0, car sales experienced minimal growth. However, the implementation of the revised GST rates in late September and October 2025 has led to a sustained increase in demand.
Stellantis India, operating brands like Jeep and Citroen, also aims for a significant increase in component exports, projecting an over four-fold jump to ₹10,000 crore next year from ₹4,000 crore. The lower GST rates have specifically benefited models priced under ₹13 lakh and certain Jeep models, making them more affordable for consumers.
