High-end automotive manufacturers look for GST clarification to reignite sales during the festive period
Auto Industry Braces for Festive Season Boost Amid GST Uncertainty
The Indian auto industry is gearing up for the festive season, with key players like Audi, Mercedes-Benz, and BMW expressing optimism despite ongoing uncertainty surrounding the Goods and Services Tax (GST).
Audi India Head Balbir Singh Dhillon anticipates a growth in consumer confidence post-GST clarification, scheduled for the first week of September. He also expects demand to increase across Audi's product range, particularly for SUVs.
BMW Group India President and CEO Hardeep Singh Brar emphasizes the need for expediting clarity on GST rates, stating that recent speculation about GST rate changes has caused uncertainty among consumers. He remains hopeful that the 5% GST on all passenger electric vehicles will continue to be retained in the GST strategy.
Mercedes-Benz India plans to roll out an integrated campaign next week, addressing customers' aspirations for the festive season. Their MD & CEO, Santosh Iyer, anticipates the season to bring in impetus and drive sales, owing to positive customer sentiment and a refreshing new portfolio on offer.
BMW is confident of sustained growth throughout the festive period due to an exciting product portfolio and strong customer engagement. They believe that reduced GST could potentially boost auto industry sales in India.
Brar also noted that consumer interest and demand are strong, but potential buyers are adopting a wait-and-watch approach, which is impacting new vehicle sales. He believes that clarity on GST rates is essential to boost the auto sector's contribution to economic growth during the current quarter.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss a dual-slab taxation structure. Post the meeting, new tax rates are expected to be announced, which could significantly impact the auto industry.
Despite the uncertainty, the auto industry in India typically experiences increased sales during the festive season. With positive outlooks from key players and the potential for reduced GST rates, the industry is hopeful for a robust festive season.
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