Country The sale of vehicles in August appeared quite dull in August. The decline in demand has led to a significant decline in wholesale sales of major automobile companies like Maruti Suzuki, Hyundai, Mahindra and Tata Motors. This declines in sales of vehicles by waiting for many potential buyers amending the GST rates and postponing their shopping. The country’s largest car manufacturing company Maruti Suzuki India’s passenger vehicle’s wholesale sales fell 8 percent in the domestic market to 1,31,278 units last month, while 1,43,075 vehicles were sold in the same month a year ago.
Mahindra & Mahindra’s sales fall by 9 percent
Hyundai Motor India domestic sales fell by 11 percent to 44,001 units last month, compared to 49,525 units a year ago. Mahindra & Mahindra said that the sales of its utility vehicles (SUVs) in the domestic market last month were 39,399 units, which is 9 percent less than 43,277 units in the same period a year ago. Mahindra Chief Executive Officer Nalinikanth Golagunta said, “With the final announcement of GST Slab, we have deliberately decided to reduce the wholesale deal to reduce the stock near our dealers.”
Tata Motors’ sales also recorded 7 percent fall
Tata Motors also recorded a 7 percent decline in passenger vehicles to be sent to dealers last month. The company sold 41,001 vehicles last month, while in August 2024 the figure was 44,142. Toyota Kirloskar said that his domestic wholesale sales increased by 2 percent to 29,302 units last month, while in August 2024 it sold 28,589 vehicles in the domestic market. JSW MG Motor India’s sales rose 52 percent to 6578 units in August, while the company sold 4323 vehicles in August last year.
Proposal to keep vehicles in a slab with 18 percent GST
The decline in sales of top car companies has come at a time when buyers have decided to postpone purchases in the hope of cutting GST rate on vehicles. The GST Council headed by Finance Minister Nirmala Sitharaman will discuss the proposal to keep only two slabs of GST rate on 2-4 September. In this, GST rate will be proposed to be charged at the rate of only 5 percent and 18 percent. Currently, GST has 4 slabs, which costs 5, 12, 18 and 28 percent tax. Under the current system, 28 percent GST is imposed on trains. In addition, 1 percent to 22 percent compensation cess is charged separately on different trains.
The total tax for small petrol vehicles based on the engine, capacity and length of the train is 29 percent while it reaches 50 percent for SUVs. However, electric vehicles are charged at the rate of only 5 percent.
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