GST reforms will inject a new growth momentum in the Indian automotive sector: Siam

The recent GST rate reductions on cars will clear the way for the growth momentum in the Indian automotive sector by making vehicles more affordable, said Industry Body Society or Indian Automobile Manufacturers (Siam) Thursday.

Siam President Shailesh Chandra welcomed, while addressing the annual convention of the body, also the step of the government to “change some of the procedural issues in an appropriate manner that would greatly help support the convenience of doing business”.

“The car industry is the government of India enormously grateful for the recent milestone decision to reduce the GST rates on vehicles that will bring renewed cheers for consumers and a new growth momentum in the Indian car sector will inject,” Chandra added.

He further said: “Making vehicles more affordable, especially in the entry -level segment, it will considerably benefit the first buyers and families with an average income, making broader access to personal mobility possible.”

In the last fiscal year, the Indian car industry performed steadily in domestic and export markets, Chandra noted. Passenger vehicles registered “the highest turnover ever of 4.3 million units, with a growth of 2 percent compared to the previous year,” he said.

Exports also saw an all time high 7.7 Lakh units and registered a huge increase of 14.6 percent on an annual basis. Chandra also noted that the two -wheeler segment continued its recovery path, up to 19.6 million units and grew by 9.1 percent, “although it is still lower than the earlier peak of 21 million, which was reached in FY19”.

Chandra also thanked the government for the appropriate change of some of the procedural issues that would greatly help support the convenience of doing business. “