Automobile sales are down throughout the country. While the country’s largest car maker, Maruti Suzuki, reported a 32.7 per cent decline in August from 1.58 lakh units to 1 lakh units this year, other manufacturers are not far behind. Here’s how much sales of the other manufacturers have fallen:
- Hyundai – 16.6%
- Mahindra & Mahindra – 31.6%
- Tata Motors – 57.8%
- Toyota – 24.1%
- Honda – 51.3%
The government is reportedly considering lowering the GST on cars, which is currently 28 per cent.
Amidst an economic slowdown, confusions over BS6 and electric cars are also factors leading to low car sales. Finance Minister Nirmala Sitharaman clarified this by saying, “All vehicles will have their due market share. It is not that we are promoting one segment of the industry at the expense of another.”
“It (the tax cut proposal) has got to go to the GST Council, where all state finance ministers assemble,” Sitharaman said. “It is for them to take a call. I have suggested to them (automobile makers) that I will take it to the Council, but the final decision will be theirs… I will wait for the GST Council to take a call.” The federal indirect tax body will meet next on September 20.
Experts believe lack of liquidity with banks and NBFCs and regulatory changes are also factors for the low sales. However, the automobile industry is eyeing the festive season for a revival.