NEW DELHI/MUMBAI: A year after GST rates were cut, automobile dispatches have continued to climb. Several two-wheeler users moved to four-wheelers as price cuts improved affordability, TV buyers have shifted towards larger sets and consumer goods volumes picked up in the Oct-Dec quarter, although they are now under pressure due to the West Asia crisis.Passenger vehicle dispatches reached a record 12.7 lakh units in April–June 2026, up 25.9% from a year earlier, according to Siam. Two-wheeler dispatches rose 20.3% to 56.3 lakh units. Siam has cited lower GST rates and easier financing among the factors supporting demand. Its figures measure supplies to dealers, rather than purchases by customers.Television shipments tell a different story. India’s smart TV shipments grew 10% year-on-year in Oct–Dec 2025, according to Counterpoint Research, before falling 3% in Jan-March 2026. TVs sized 55 inches and above were the fastest-growing category in the March quarter, accounting for nearly one-third of shipments.The trend, however, got stalled because of the uncertainty triggered by Operation Epic Fury US and Israel launched against Iran on Feb 28 and Counterpoint’s TV tracker recorded a 9.8% decline in shipments in April–June. GST on TVs above 32 inches, including 55-inch models, was slashed from 28% to 18% last Sept.Keshav Bansal, director at Intex Technologies, said the cut created “a meaningful affordability window” for bigger TVs. Intex’s consumer durables business grew 80% in FY26, with smart TVs among the drivers, he said. But “unit volumes have not risen in proportion to value growth; the more significant shift has been in product mix,” as buyers chose larger screens and better technology.Bansal said lower GST also supported air-conditioner demand, alongside a favourable summer and a lower comparison base. Rising input costs, including memory chips for TVs, and the cost of meeting newer energy-efficiency norms for ACs have since absorbed part of the tax benefit, he said.“In the long-term, it is definitely a positive, especially with people looking to move to branded products. But there is some impact in the short run due to the recent increase in input prices. Also, full refund of input tax credit will help in offsetting some of the cost,” said Liberty Shoes executive director Anupam Bansal.FMCG companies initially saw an improvement in demand after the rate changes. Volume growth picked up at companies, including Hindustan Unilever, Marico and Dabur. Nestlé India reported its strongest volume growth in five years in the Dec 2025 quarter, attributing it partly to a market recovery supported by GST benefits.That early lift has come under pressure as companies raised prices to offset higher costs. Companies and analysts are keeping a close watch on sales in the current quarter.
