New Delhi, Sept. 23 -- The GST 2.0, which is the most important tax revision to take place in India in recent years, has finally kicked in from September 22. With this move, the Indian auto industry, especially the passenger vehicle segment, is expecting a major overhaul in the consumer sentiment and sales graphs.

The entry-level small cars that have always remained the backbone of the Indian passenger vehicle market for a long time and held a market share of around 74% in FY18, but lately, have witnessed the stake shrinking to about 22% in FY25 due to multiple factors. While the rise of SUVs has pushed back the hatchbacks to the back, the affordability crisis also played a crucial role.

However, with the GST 2.0 tax slabs announced ear...