As the Goods and Services Tax (GST) rolled out on July 1, 2017, many industries were expected to go through some major changes. The automobile industry, in particular, saw a significant impact as the GST regime brought changes in prices, taxes, and incentives. It was speculated that the prices of vehicles would go down post-GST, and the industry did not disappoint.
Automobile companies in India, both domestic and international, slashed prices of their products post-GST. This move has affected the entire automobile sector, including two-wheelers, cars, and commercial vehicles.
Two-wheeler manufacturers such as Hero MotoCorp, TVS, Yamaha, Bajaj Auto, Honda Motorcycles and Scooters India, and Royal Enfield, among others, have reduced the prices of their products up to INR 8,400. This price cut has been possible due to the reduction in the GST rate, which has been decreased by around 2-3% for two-wheelers.
The price cuts have been welcomed by customers across India, and the sales of two-wheelers have increased post-GST. In the first month after GST was rolled out, two-wheeler sales saw a growth of 14.8% compared to the same month last year.
The GST rate for cars has been reduced by around 2-3%, depending on the vehicle type and engine capacity. Car manufacturers such as Maruti Suzuki, Tata Motors, Honda Cars India, Toyota Kirloskar, and Skoda, among others, have reduced the prices of their products by up to INR 3 lakh.
The price reduction has been beneficial for the car industry, as the sales of cars in India have seen a growth of 11% in the first month post-GST. The reduction in prices has made cars more affordable for the middle-class segment, which has seen a significant boost in car sales.
The GST rate for commercial vehicles has been reduced by around 2-3%. Commercial vehicle manufacturers such as Tata Motors, Ashok Leyland, Mahindra and Mahindra, and Volvo Eicher, among others, have reduced their prices by up to 4-6%.
The price reduction has been a significant relief for the commercial vehicle industry, which has seen a decline in sales in the past few years. The reduction in prices has made commercial vehicles more affordable, which has led to a growth in sales post-GST.
The reduction in prices post-GST has been a significant relief for the automobile industry, which has been struggling with declining sales for the past few years. The reduction in prices has made vehicles more affordable, which has led to a growth in sales in the first month post-GST.
The GST regime has brought about significant changes in the automobile industry, and the reduction in prices is just one of them. The GST regime has simplified the tax structure, reduced the tax burden on manufacturers, and has made the entire process of buying and selling vehicles more transparent.
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