GST hits leading Indian car makers except Maruti
Posted on: 04/Jul/2017 3:14:23 PM
In the month of June, there was a drastic dip in car sales. Hyundai, Mahindra, TATA Motors, and other top car makers are badly hit because of this, and Maruti Suzuki is the only survivor even in this dip.
Due to fluctuating tax rates because of GST implementation, car sales have got badly hit. But how did Maruti manage to cope with the scenario?
The top 5 car makers in India were able to sell only 1,59,938 cars in June month. This is 9 percent lesser than the sales during the same period last year.
Because of implementing GST, trade has got badly hit in the past 2 months for all supply chain firms, manufacturers, and sellers.
Dip in tax
With GST introduction, the tax on most sought-after small sized cars have got increased. Contrarily, large sized cars have seen dip in tax. Hence, in June month, SUV type car sales have got hit.
In the Indian market, Maruti Suzuki Baleno and Breeza have seen good welcoming. The reason behind this is that Baleno model had acquired good trading in the Indian market well before GST and this has prevented Maruti from getting hit with the GST wave.
