Maruti Suzuki Launches Revolutionary Rs 1,999 EMI Scheme Amid Record-Breaking Festive Demand and GST 2.0 Reforms
Maruti Suzuki, India’s largest automaker, has unveiled a groundbreaking financing scheme aimed at making car ownership more affordable for millions of Indians. As the company enjoys a record-breaking festive season, it is now offering entry-level cars at an unprecedented monthly EMI of just Rs 1,999. This initiative is set against the backdrop of the government’s GST 2.0 reforms, which have significantly reduced taxes on small cars, further boosting their affordability.
Record-Breaking Festive Performance
Maruti Suzuki’s timing for this launch could not be better. The company has delivered 1.65 lakh vehicles in the first eight days of Navratri and reached 2 lakh deliveries by the festival of Dussehra, nearly doubling the performance seen during the same period last year. Bookings have surged dramatically, with 2.5 lakh pending orders and daily bookings climbing from 10,000 to 18,000. Customer inquiries have also doubled, averaging 80,000 per day.
Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, revealed that the new financing product will enable buyers to purchase entry-level models like Alto, WagonR, and Celerio with a monthly EMI as low as Rs 1,999. While full details regarding down payment, loan tenure, and bank partners are yet to be disclosed, the scheme aims to attract first-time car buyers who have traditionally found car ownership financially out of reach.
The GST 2.0 Affordability Revolution
The launch follows the government’s introduction of GST 2.0 reforms on September 22, 2025, which drastically cut tax rates on small cars from 28-31% to 18%. This legislative change has resulted in significant price drops across Maruti Suzuki’s small car lineup: Alto K10’s price decreased by Rs 1.07 lakh to Rs 3.69 lakh, WagonR’s price was slashed by Rs 79,600 to Rs 4.99 lakh, and Celerio’s cost fell by Rs 94,100 to Rs 4.69 lakh.
Banerjee described the impact as a “positive tsunami” for the auto sector, with small car sales doubling. The reforms have been especially effective in Tier-2 and Tier-3 cities, where consumer bookings for these affordable vehicles have nearly doubled, signaling a strong appetite for upgrading from two-wheelers to cars in these regions.
Addressing India's Low Car Ownership
One of the key motivators behind the Rs 1,999 EMI scheme is to address India’s low car ownership rate. Currently, only 34 cars exist per 1,000 people in India, which is significantly lower than China’s 185 or the United States’ 832 per 1,000 population. While more than half of Indian households own two-wheelers, fewer than one in ten possess a car.
Maruti Suzuki recognizes the immense opportunity in converting the country’s 260 million two-wheeler owners into first-time car buyers. This innovative financing option positions the company to capitalize on this vast market potential. Additionally, the company is experiencing a 50% growth in exports and has mobilized production teams to work weekends to keep up with demand.
Conclusion
Maruti Suzuki’s Rs 1,999 EMI scheme for entry-level cars represents a bold step toward democratizing car ownership in India. Fueled by the GST 2.0 tax reforms and exceptional festive demand, the scheme not only helps make vehicles more affordable but also supports India’s goal of increasing car ownership from its current low levels. With prices lowered and financing made accessible, the coming months are expected to witness a surge in new car buyers, especially from smaller cities and rural areas, potentially transforming India’s automotive landscape.
This initiative, along with record sales and growing exports, marks a pivotal moment for Maruti Suzuki and the Indian auto industry as a whole.