Last Year's GST Cut and an Earlier Diwali Cloud October Sales Comparisons

October sales growth slowed sharply at Maruti Suzuki and turned negative at Toyota Kirloskar Motor, according to the October 2026 figures both companies released on 1 November.

Two things set this October apart from last year's. The GST cut on cars took effect in late September 2025, and Diwali fell in October last year but falls in November this year.

What the Numbers Show

Maruti still set a record for total monthly sales in October. But its growth in India was about half the rate of the previous three months.

Toyota sold 29,521 vehicles in India, 26.7% fewer than the 40,257 of a year earlier. Its October 2026 release compared only the year to date, so the monthly change comes from setting it against the October 2025 release, which shows Toyota's total fell 29.2%.

The GST Base

The GST Council cut the tax on small cars from 28% to 18% with effect from 22 September 2025, according to the government's Press Information Bureau. Small cars here means petrol, CNG or LPG cars up to 1,200 cc and diesel cars up to 1,500 cc, none longer than 4 metres. Larger cars moved to a flat 40% rate with no extra cess.

In its full-year results in April, Maruti credited the GST reduction for "steep growth in the domestic market" between October 2025 and March 2026. Those stronger months are now the base for each year-on-year comparison.

The Festival Calendar

Diwali fell on 20 October last year. This year it falls on Sunday, 8 November, according to the central government's holiday list.

Toyota described October 2025 as a festive month and said GST reforms had lifted buyer confidence. Its total that month was 39% above October 2024.

What to Watch

Both companies have published their monthly figures on the first day of the following month. November's numbers, expected on 1 December, will include this year's Diwali.

Maruti's utility vehicles kept gaining ground despite the slowdown, narrowing the gap with its small cars to 3,090 units.