GST Cut Heralds New Era for Indian Automotive Growth

The recent cut in GST rates on automobiles in India is expected to bolster growth in the automotive sector by making vehicles more affordable. This move, welcomed by SIAM, aims to enhance personal mobility access. The industry has seen record sales and export growth recently.

The Indian automotive industry is poised for significant growth following the reduction in GST rates on vehicles, announced by the government. Industry leaders, including the Society of Indian Automobile Manufacturers (SIAM), have praised this decision for its potential to make vehicles more affordable and accessible to a broader audience.

SIAM President Shailesh Chandra highlighted at the annual convention that this tax cut would particularly benefit first-time car buyers and middle-income families. The decision is seen as a landmark move that will invigorate the sector by injecting fresh growth momentum and supporting broader personal mobility.

In the previous fiscal year, the Indian auto industry saw record-breaking sales, with 4.3 million passenger vehicles sold domestically and a notable increase in exports. The two-wheeler segment, too, showed recovery signs, reflecting a 9.1% growth. Chandra also commended the government's efforts to ease procedural issues, which further support industry growth.

(With inputs from agencies.)