Even GST 2.0 failed to fuel entry hatchback revival
GST 2.0 became effective on September 22, 2025, and a year later, the combined wholesale figures of seven entry hatchbacks, whose ex-showroom prices start under Rs.5 lakh (Alto, Spresso, Wagon R, Celerio, Kwid, C3, and Tiago), grew by 17.1% to 473,484 units, as compared to 404,380 units in the preceding 12-month period. While a 17% growth appears good in isolation, it lags behind the overall passenger vehicle market and is vastly overshadowed by the explosive growth recorded across the SUV segment.
The contrast is striking. Sub-4-metre SUVs (priced in the Rs.7-14 lakh range) surged 21.3% over the same 12-month period, expanding from 1,339,995 units to 1,625,984 units. However, midsize SUVs (priced in the Rs.11-22 lakh range) grew the strongest, and jumped 36.8% from 777,999 units to 1,064,250 units.
