GST Reforms Turbocharge India's Automotive Growth

Maruti Suzuki India announced on Thursday that the rationalisation of Goods and Services Tax (GST) would boost the automotive industry, projecting an annual growth of approximately 7%. Chairman RC Bhargava emphasized the positive impact on economic development, particularly through manufacturing and employment opportunities.

The revision places small cars in an 18% GST bracket, reducing taxes by 10% and making vehicles more accessible. Bhargava described this as a significant reform, aiding the goal of a developed India. The new GST framework is expected to enhance consumer purchasing power and drive production levels upwards.

The automotive sector, including broader markets like tyres, benefits from these changes. With the tyre GST reduced to 18% and farm tyres to 5%, players like JK Tyre & Industries foresee substantial growth in the mobility ecosystem. Market leaders approve the GST Council's measures, especially those promoting electric vehicle accessibility.

(With inputs from agencies.)