Passenger vehicle sales picked up speed in September as the goods and services tax (GST) rate cuts boosted demand ahead of the festive season, helping the industry clock its best monthly growth in nine months. Dispatches of cars and SUVs rose 5.42% year-on-year to 381,437 units, marking a sharp turnaround from the sluggish performance seen through most of this year.

The surge followed the rollout of GST 2.0 from September 22, which lowered the levy on mass-market vehicles to 18% from 28%. Coupled with the onset of Navratri, the change translated into heavy customer traffic at showrooms and brisk dealer orders, even though some companies continued to grapple with supply chain bottlenecks.

Market shake-up and GST impact on top players

Maruti Suzuki , the market leader, was the only

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