The sale of car sales in Slow Lane for the 4th consecutive month

New Delhi: the sale of passenger vehicles decreased for the fourth consecutive month in August with car manufacturers who checked shipments to dealers prior to the announcement of revised GST rates later this month.

According to estimates from the industry, no fewer than 330,000 vehicles were sent from factories to dealers last month, a decrease of 7% of 356,000 units a year earlier.

A reduction in the GST rate on cars is expected to help reduce prices, which may increase the sale. The GST Council, the APEX decision-making body for the indirect tax, is planned to comply with 3-4 September, to discuss the levy on small cars to 18% of 28%. Larger cars and SUVs are likely to be confronted with the special rate of 40%, compared to 43-50% load, including GST and COSS, currently.

“Many OEMs (original equipment manufacturers) have consciously calibrated shipments to dealers, because the revised GST rates will be announced later this month,” said Partho Banerjee, Senior Executive Officer, Maruti Suzuki. “This influenced wholesale numbers in August. But the indications in the market are positive.”

He said that Maruti’s bookings increased by 16% during the Onam Festival in Kerala, while there is a good traction in Maharashtra during the Ganesh Festival.

Maruti Suzuki sold 131,278 vehicles in August, a decrease of 8% compared to a year earlier.

Banerjee expects the turnover to bring new life as soon as the GST rates have been revised. “What we understand is that the GST revision will be an important reform that will not only be good for the car industry, but also for the overall economy.”

Hyundai Motor India, which was obvious to Mahindra & Mahindra (M&M) to reclaim the second lock on the local market last month, sold 44.011 vehicles. Tata Motors and Mahindra & Mahindra registered the turnover of 41.001 units and 39,399 units, 7% and 9% respectively.

“Augustus witnessed a relatively robust question in the SUV segment in the midst of expected GST stewards,” said Naliniërh Gollagunta, CEO, Automotive Division, M&M. “With the last GST announcement that is approaching, we consciously decided to bring down the wholesale invoicing to minimize the shares supported by our dealers. We are looking forward to the GST nationalization, which would be a question driver during the festive season.”

“September will be an important phase for industry in general, and we will accurately observe market trends while they unfold,” says Varinder Wadhwa, vice-president, sales machines for sales service at Toyota Kirloskar Motor (TKM). The sale at the company remained flat last month at 28,589 units.

The domestic turnover of Hyundai fell by 11%, while exports grew by 21% last month. Tarun Garg, Chief Operating Officer, HMIL said: “Our goal is to set up India as a strategic production base for emerging economies and to become Hyundai’s largest export hub outside South Korea. This ambition wins a strong traction month of month.”