Reduced GST Rates Ignite Festive Auto Boom in India

India's auto sector is witnessing an unprecedented boom thanks to the latest reductions in Goods and Services Tax (GST) rates, which came into effect on Monday. According to Shailesh Chandra, President of SIAM and Managing Director at Tata Motors Passenger Vehicles Ltd, dealerships nationwide are experiencing a surge in both foot traffic and vehicle deliveries. "The start to this festive season has been extraordinarily encouraging," Chandra remarked, highlighting how the GST reduction has triggered consumer enthusiasm.

The recent changes in GST rates align with the Prime Minister's call to embrace the festive season as 'Bachat Utsav', buying Indian-manufactured goods and fostering national prosperity through a focus on indigenous products. Chandra noted the heartening trend of families purchasing new vehicles during this auspicious period. He advised prospective buyers to book early to secure timely delivery as demand continues to soar.

Significant GST modifications took effect on September 22, the onset of Navratri, reducing tax rates for smaller cars and hybrids, making them more affordable. These changes are part of sweeping reforms introduced by the GST Council aimed at easing the tax burden on citizens while spurring economic growth. The Council's decision, described by the government as a Diwali gift, simplifies the rate structure, bringing the majority of goods under a lower tax bracket and fostering a celebratory economic momentum.

(With inputs from agencies.)