GST Clarity: The Accelerator the Luxury Auto Industry Needs

The auto industry, including the luxury car segment, is eagerly awaiting clarity on new GST rates, which is essential for regaining momentum during the lucrative festive season. A high-powered GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, will address this issue as they discuss a move to a two-slab taxation system.

Hardeep Singh Brar, President and CEO of BMW Group India, expressed concerns about consumer uncertainty due to ongoing speculation about GST changes. He stated that while consumer interest remains high, a wait-and-watch approach is delaying purchase decisions, affecting sales. Brar emphasized the necessity of clear GST rates to ensure the sector's robust contribution to economic growth.

Balbir Singh Dhillon of Audi India and Santosh Iyer of Mercedes-Benz India echoed the sentiment, noting that clarity on GST will likely boost consumer confidence and sales, particularly for SUVs and during the festive season. However, industry experts predict only modest growth, as broader economic challenges persist.

(With inputs from agencies.)