CarTrade Tech Limited, one of India’s leading digital marketplaces for automobiles and used products, said the government’s recent reduction in GST on passenger vehicles, two-wheelers, and used vehicles is set to significantly improve affordability, lift consumer sentiment, and accelerate transaction volumes across both new and used segments. Early industry trends already reflect this positive shift.

The company reported that its consumer platforms, CarWale and BikeWale, have witnessed over a 25% increase in consumer traffic following the GST reduction. With the festive season approaching, CarTrade Tech expects demand momentum to strengthen further.

According to the company, key growth drivers include:

Increased participation from dealers and OEMs, supporting higher new vehicle sales.

Seasonal festive demand, historically the peak period for auto and retail sales.

Enhanced affordability from GST cuts, spurring transactions in both new and used categories.

Commenting on the development, Banwari Lal Sharma, CEO – Consumer Group, CarTrade Tech, said:

“The GST reduction is a game-changer for India’s automobile industry. By lowering ownership costs for consumers and enhancing velocity for dealers, it has triggered a fresh wave of demand. Coming just ahead of the festive season, this move will act as a strong catalyst for both new and used segments, boosting volumes while deepening trust and participation across our ecosystem of consumers, dealers, and OEM partners.”