Goods and Services Tax is an indirect tax applicable across India which replaced the multiple other taxes issued by the Indian Govt on several goods and services. Following the passage of the 122nd Amendment bill, GST was applicable from 1st July 2017 with one tax ranging from 0% to 18%.
Considering the benefits from the tax cut on various vehicles across the country due to the implication of GST( One Nation, One Law), the customers were rather keen on postponing the vehicle sales. Their confusion on whether to purchase the vehicles in june or not lead to a disastrous decrease in the automobile sales by 11% which is the lowest it has ever been since May 2013.
Maruti Suzuki Sold 14,856 Units of Alto Series in June 2017
Stock rationalization was all some dealers considered in June 2017 with them majorly focusing on defraying their existing schemes and not to pursue them in July 2017 and this all due to the speculations considered by the impact of GST and its to be impact on the sales.
The overall gradual decline in sales for Hyundai Motors ranged from 5.64% to 37,562 units, Mahindra and Mahindra motors ranged from 5.27% to 16,169 units and Tata Motors from 12.19% to 13,148 units in June 2017.
Maruti Suzuki Sold 12,049 Units of 2017 New Dzire in June 2017
Rakesh Srivastava, director – sales and marketing, HMIL said, “In a challenging market fueled with speculations on the GST tax structure, Hyundai registered its highest ever half year domestic sales at 2,53,428 units with a growth of 4.1 percent on account of strong acceptance of super performer brands Grand i10, Elite i20 and Creta in pre-GST business environment. We expect a positive demand pull post the successful implementation of GST in the coming months as industry will witness heightened level of customers’ interest in a seamless unified single market.”
Thus, the vehicle sales may have dropped in June 2017 but after the amendment of GST there was a gradual rise in the sales since 1 July 2017 due to decrease in price rates of several cars. The ability to afford luxury car has ultimately became a little bit easier..
Hyundai Sold 6436 Units of Creta SUV in June 2017
