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Inquiry motion Prime Minister Narendra Modi during his speech on August 15 indicated that the government is working on a simplified and reorganization GST regime, which will be implemented during this festival season. Under this regime, the GST rates would be revised for automobiles, bringing down the tax rates for both mass-market and luxury vehicles. However, the government is yet to annouse the revised rates. In such a situation, luxury car manufacturers like Audi, BMW and Mercedes-Benz believe that a clear picture about the new GST rates as soon as possible will help the overall auto industry gain momentum in the ongoing quarter.
Talking to PTI, in a conversation with PTI, BMW Group India President and CEO Hardeep Singh Brar said that recent speculation about changes in GST rates has created uncertainty in the minds of consumers. He said that consumers interest and demand are strong, but potential buyers have adopted a waiting-and-dagger approach, and this delayed decision is affecting the sale of new vehicles at a certain level by making delayed decisions. “It is necessary to accelerate clarity at GST rates and ensure the contribution of the auto sector in economic development during this quarter,” Brar said.
He also hopes that permanent push towards electric cars will be encouraged as a priority and all passenger will be reflected in GST strategy by maintaining the current 5 percent GST on electric vehicles. A BMW India official also said that an adverse effect from GST rates may derail the vision of high electric adoption and local production in India, while also given that the company is ready to introduce several models trims during the festival season.
Audi India Head Balbir Singh Dhillon stated that the company is entering the festive season with steady momentum and a positive outlook. He said, “After the expected GST explanation in the first week of September, we expect consumer confidence that we will demand to grow and grow in our product range – especially for our SUVs, who continue to attract customers,” he said. Dhilan further stated that with an exciting product portfolio and strong customer engagement, BMW is confident of continuous increase in the duration of this festival.
Santosh Iyer, MD and CEO of Mercedes-Benz India, said that the festival is highly anticipated by the seasonal customers, and the company will launch an integrated campaign next week, in which customers' aspirations will be addressed. He said, “We hope to sell impatts and drives in this festive season as this is the right time, to refresh a new portfolio due to positive customer spirit and on the offer,” he said.
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