The entire automotive industry including all the players in the passenger car, commercial vehicle as well as two/three-wheeler manufacturers are totally united in seeking a reduction in the GST rate from 28% to 18% on vehicles. This was reinforced by Mr. Rajan Wadhera, President, SIAM.
The automotive industry is currently facing a daunting challenge of a deep slowdown that urgently needs some form of stimulus from Government to supplement the efforts being made by the industry in reversing the industry fortunes towards positive performance. Even in the past, the Government has offered stimulus to propel growth and it has reversed the growth in a positive direction. In addition to the reduced demand today, new safety and emission norms that would come into play in the next few months would further drive up the cost of vehicles, leading to further pressure on demand. A reduction in the GST rates would go a long way in maintaining the price competitiveness of the industry and boosting the consumer demand, said Mr. Wadhera.
The industry is looking up to Government to provide urgent support to overcome this trying period and is equivocal in seeking this support from Government in the forthcoming Union Budget, said Mr. Wadhera.