Revving Up India's Automotive Future: GST Rate Cuts Fuel Growth

The GST Council's recent decision to slash tax rates on various categories of automobiles is expected to revitalize the Indian automotive sector, leading to enhanced affordability and increased demand, industry players stated on Thursday.

Industry leaders welcomed the simplification of the tax structure, especially the reduced rates for mass mobility. This move is anticipated to positively affect first-time buyers and middle-income families. They also expressed hope for swift government notification on the compensation cess for unsold vehicles to ease the transition.

SIAM President Shailesh Chandra noted that lowering GST rates to 18% and 40% would invigorate consumer interest, particularly in entry-level vehicles, just in time for the festive season. Similarly, FADA President C S Vigneshwar lauded the reforms for strengthening India's mobility ecosystem. Stakeholders stress the importance of glitch-free implementation to ensure consumer benefits.