GST boost revives small car market; Stellantis sees 5% growth after lull
Stellantis India Managing Director & CEO Shailesh Hazela said the small car market is gaining traction among first-time buyers, particularly consumers upgrading from two-wheelers to four-wheelers.
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Demand for passenger cars, especially in the small car category, has revived following recent GST reforms, according to a PTI report. Stellantis India said the passenger vehicle segment has returned to over 5% volume growth after a period of stagnation.
Stellantis India Managing Director & CEO Shailesh Hazela said the small car market is gaining traction among first-time buyers, particularly consumers upgrading from two-wheelers to four-wheelers.
The company said its Citroën range — with multiple models below ₹13 lakh — has benefited from the GST changes. Jeep models have also become nearly 10% cheaper, boosting customer interest.
Driven by festive demand and GST benefits, Stellantis recorded retail sales of 1,426 units in the past month.
Under the Citroën brand, Stellantis offers compact models including the C-cubed hatchback, EC3, C3 Aircross, Aircross X SUV and the newly launched Basalt and Basalt X Coupé-SUV.
The company has invested ₹11,000 crore in India, led by long-term capital expenditure decisions rather than short-term demand cycles. Its manufacturing presence also extends beyond domestic sales, with facilities in Hosur and Bengaluru capable of producing up to 3.74 lakh gearboxes and 3 lakh engines annually.
