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The festive season and rate rationalization significantly boosted consumer demand

When TNIE visited the Aavin outlets in Chennai on Sunday, the staff said no instructions had been issued to lower product prices.

Among two-wheeler makers, Classic Legends, which sells Jawa, Yezdi and BSA bikes, said it will also be extending the full benefits of GST 2.0 rationalisation to its patrons.

This follows the announcement of GST 2.0 at the 56th GST Council meeting held on September 3, 2025.

The move by Tata Motors has put pressure on other carmakers to follow suit even as they were looking to retain some benefits to improve their margins.

Reacting to speculation of a significant GST (Goods and Services Tax) rate cut, Car sales in India fell sharply in August 2025 as buyers delayed purchases and dealers reduced stock orders.