The recent GST 2.0 implementation has provided significant relief to India's automotive sector, which was previously struggling with weak demand. Industry experts now anticipate double-digit growth for the fiscal year 2026 as the tax overhaul removes long-standing barriers. The reform addresses several structural issues that had been hampering the industry's expansion potential, including tax complications and compliance burdens. According to recent market analysis, passenger vehicle demand has rebounded strongly following the implementation, with SUVs leading the recovery while alternative fuel vehicles like CNG and electric models continue to gain market share. This shift indicates a gradual transformation in powertrain preferences among Indian consumers. The GST revision comes at a critical time when the industry was facing margin pressures and inventory challenges, with manufacturers now reporting improved production planning and more competitive pricing strategies.