NEW DELHI: The recent GST rate cut on automobiles is set to boost growth in India’s automotive sector, make vehicles more affordable, and expand access to personal mobility, the Society of Indian Automobile Manufacturers (SIAM) said on Thursday.
Speaking at the industry body’s annual convention, SIAM President Shailesh Chandra also welcomed the government’s decision to amend certain procedural issues, calling it a significant step in promoting ease of doing business.
“The automobile industry is deeply grateful to the Government of India for the landmark decision to reduce GST rates on vehicles. This move will delight consumers and inject fresh growth momentum into the sector,” Chandra said.
He added, “By making vehicles more affordable, especially in the entry-level segment, first-time buyers and middle-income families will benefit, broadening access to personal mobility.”
Chandra highlighted that in the last fiscal year, the Indian auto industry maintained steady performance across domestic markets and exports. Passenger vehicles recorded a record 4.3 million units sold, up 2% from the previous year, while exports hit a record 770,000 units, marking a 14.6% year-on-year increase.
The two-wheeler segment also continued its recovery, reaching 19.6 million units, a 9.1% growth, although still below the FY19 peak of 21 million units.
He concluded by thanking the government for the procedural amendments, noting that they would greatly support ease of doing business.
