Sales of cars, motorcycles, televisions, beauty products, and premium watches have surged in rural markets during Navratri (September 22-October 2), more than doubling in several categories, according to the Economic Times (ET). The growth reflects a revival in entry-level demand following the Goods and Services Tax (GST) overhaul.
Major automakers like Maruti Suzuki, Hyundai, and Tata Motors reported car sales in rural areas rising between 100% and 133% compared with the pre-GST period, ET noted. Two-wheeler bookings are also climbing, while tractor sales are expected to rise 30-40% in September, driven by robust demand in the final five days of the month, despite limited dispatches in the first three weeks, according to industry estimates shared with ET.
Maruti Suzuki said bookings in rural regions have doubled. “Beyond the top 100 cities, we are seeing booking growth close to 100%,” senior executive officer of marketing and sales, told ET. Nationally, bookings have risen by 35%.
Hyundai Motor India (HMIL) also reported a spike in rural interest. “From September 22-25, bookings from rural markets increased nearly 133% compared with September 1-21,” Whole-time director and COO, told ET. Enquiries grew 1.5 times in the first four days of Navratri, with rural bookings doubling from the same period last year, indicating both strong curiosity and conversion, he added.
According to senior industry officials cited by ET, rising affordability in rural areas-driven by GST rate rationalisation-combined with favorable monsoon conditions, higher crop prices, and increased sowing, has strengthened consumer sentiment.
Smaller towns are also propelling e-commerce growth. Data from Amazon and Flipkart, shared with ET, shows that online sales of TVs have doubled in rural areas compared with urban regions during Navratri. CEO of Super Plastronics, which sells TVs under Kodak, Thomson, and Blaupunkt, told ET, “Online marketplaces are offering prices in rural areas that are far more attractive than what consumers would find in local stores, boosting absolute sales in tier II-IV markets over metros.”
The two-wheeler segment, which had seen sluggish demand earlier this fiscal year, is now witnessing an uptick. Chief business officer of Hero MotoCorp, told ET that GST-related price cuts have started yielding results. “Good monsoons, full reservoirs, and no major crop damage have helped. Historically, strong tractor sales also correlate with two-wheeler demand,” he said.
Rural demand is expected to further strengthen as harvesting concludes during the festive season, with rural markets accounting for nearly 55% of overall sales, ET reported. The two-wheeler industry anticipates 7% growth in FY26, following a 1% drop to 8 million units in the first five months of FY26 before the GST cuts.
Festive offers are also influencing rural buying behaviour. “There is awareness among rural consumers about tax cuts and attractive offers,” an industry executive told ET. “However, limited September dispatches mean consumers must act fast to receive deliveries during auspicious mahurat periods.”
Tata Motors’ chief commercial officer for passenger vehicles, told ET, “The festive season, coupled with pent-up demand and GST rate reductions, has driven strong momentum in rural markets. Bookings have doubled post the new pricing, and retail demand is expected to strengthen further.” He added that rural buyers are increasingly opting for cars with premium features, advanced technology, and higher safety standards.
Consumer electronics are also seeing strong rural demand for higher-end products. According to ET, Amazon reported double-digit growth in smartphones, with models above Rs 20,000 up 50% year-on-year. QLED and mini-LED TVs rose 23% and 27%, respectively; lab-grown diamonds grew tenfold; South Korean beauty products tripled; and premium watches increased 1.5-2 times.
Apparel sales in rural areas have also picked up with Dussehra approaching. Managing director of V-Mart Retail, a fashion chain focused on small towns and rural markets, told ET, “Excitement is primarily for high-ticket items like electronics, but retail demand for apparel is also improving.”
The government reduced GST on small cars (under 4 meters and up to 1,200cc for petrol/CNG/LPG and up to 1,500cc for diesel) to 18% from 28-31%, effective September 22. ET reported that this tax cut, combined with festive schemes, has delivered net benefits of 8.5-9.9% for buyers, with overall savings on passenger vehicles now reaching 12-15%.
