Will the reduced Maruti Suzuki car GST rate push more people to buy small cars instead of two-wheelers?

I think yes, because the psychology of buyers changes. Suppose someone saved ₹4 lakh for a car. Now if the car becomes cheaper by ₹50,000, he feels more confident. That same person may have been considering a high-end bike earlier. Now he may directly jump to a small car.

It will influence some two-wheeler buyers, but not all. A bike is still far cheaper. Even after the GST cut, the cheapest car is above ₹3 lakh. A good two-wheeler costs less than ₹1 lakh. For people who are already considering safety and family comfort, yes, the GST cut is an encouragement to buy a small car instead of a bike. But for lower income groups, two-wheelers will remain the main choice.

Not really. Two-wheelers are used for very different purpose. They are faster in traffic, cheaper to maintain, and easier to park. A family may buy a car after GST cut, but they will still keep at least one two-wheeler.