Hyundai India forecasts that the recently announced GST 2.0 reform will restore demand in both rural and urban markets, pulling domestic sales out of slump.
The company’s domestic sales were down 11.2% in April-August compared to last fiscal, but exports in that period grew by about 12.45%.
With the new capacity coming online at its Talegaon plant (adding ~1.7 lakh units), Hyundai says it will be ready to meet both domestic recovery and export demand.
The GST reduction improves price competitiveness for vehicles, especially smaller and entry level models which saw heavier tax falls.
Automotive sector broadly is expected to benefit from improved sentiment, lower input and tax burden, especially ahead of festival season.
Hyundai also notes capacity constraints have constrained some growth and that new plant expansions will ease those bottlenecks.
Export momentum remains strong; export share rose to ~27% in the first quarter, up from ~21% in same period last year.
Domestic market revival is crucial; policymakers hope tax relief will restore buyer interest and boost auto-sector employment.
Investors will be watching whether the price reductions are passed to consumers and whether demand picks up meaningfully.
If successful, this could mark a turning point for automobile makers who had been underperforming in recent months.