In the first month after reduction in the Goods and Services (GST) tax which came into effect from September 22, 2025, the sales of two wheelers and cars increased 46 per cent at 1,76,009 compared to 1,20,244 in the same period last year in Andhra Pradesh.
As per the new new vehicle registration data of the State Transport Department, in the first 30 days of the reduction from September 22 to October 22, the sale of two-wheelers went up 48 per cent at 1.47 lakh. In the corresponding period of the previous year, 99,972 two-wheelers were sold.
“The reduction of GST on small cars and two-wheelers below 350 CC from 28 per cent to 18 per cent has been well received by the middle-class especially employees and those involved in small businesses as shown in the surge in new registrations, ‘’ a senior official told businessline.
The number of cars sold in the period under review too went up 45 per cent at 12,895 against 8911 sold in the year-ago period.
Though the tax was reduced, the State Exchequer gained from the increase in the sales. The revenue of the Transport Department grew 28 per cent at ₹296 crore against ₹232 crore.
“The GST reduction came in the festive season which is generally good for vehicle sales. Special measures taken by the vehicle manufacturers to communicate the advantage of price, proactive approach by banks to extend vehicle loans are also behind the increase,’’ P Raghu Ram, Manager of a two – wheeler dealer in Vijayawada.
The vehicle dealers are expecting greater traction in sales again in the upcoming festive season in January.
