GST: Trains waiting for cheap, sales of Maruti Suzuki, Hyundai, Mahindra and Tata Motors decreased
The wholesale sales of major vehicle manufacturers Maruti Suzuki, Hundai, Mahindra and Tata Motors saw a decline due to declining demand during August. This declines in vehicle sales due to many potential buyers waiting for amendment in GST tax rates and postponing their shopping. People are waiting for the vehicles to become cheaper.
The country’s largest car manufacturer Maruti Suzuki India (MSE) passenger vehicles last month had fallen eight percent to 1,31,278 units in the domestic market, while 1,43,075 vehicles were sold in the same month a year ago.
Maruti’s small cars sold from 10,648 vehicles to 6,853 vehicles a year ago. However, sales of its compact cars increased from 58,051 vehicles to 59,597 vehicles a year ago.
Maruti sales of utility vehicles declined 14 percent to 54,043 units last month as against 62,684 units in the same period a year ago. Hyundai Motor India domestic sales fell by 11 percent to 44,001 units last month, compared to 49,525 units in the same period a year ago.
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The company’s Chief Operating Officer (COO) Tarun Garg said, “Our goal is to establish India as a strategic manufacturing center for emerging economies and to make Hundai’s largest export center outside South Korea.”
Mahindra & Mahindra (M&M) said that the sales of its utility vehicles in the domestic market last month were 39,399 units, which is nine percent less than 43,277 units in the same period a year ago.
Nalinikanth Golagunta, Chief Executive Officer (Vehicle Block) of M&M, said, “With the final announcement of GST rate, we have deliberately decided to reduce the wholesale deal to reduce the stock near our dealers.”
Tata Motors also recorded a seven 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 vehicles.
Toyota Kirloskar Motor (TKM) said its domestic wholesale sales increased by two percent to 29,302 units last month as compared to 28,589 units in the domestic market in August 2024. JSW MG Motor India’s sales rose 52 percent to 6,578 units in August, while the company sold 4,323 vehicles in August last year.
Slab will be 5 and 18 percent
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 by doing GST on 3-four September. It will be proposed to impose GST tax at the rate of only 5 percent and 18 percent.
Currently, there is a four-level structure of the Goods and Services Tax (GST) in which taxes are taxed at the rates of five, 12, 18 and 28 percent. Under the current system, GST is imposed on vehicles at the rate of 28 percent. Apart from this, separate compensation cess (one to 22 percent) is also levied on the basis of type of vehicle.
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The total tax for small petrol vehicles based on the engine, capacity and length of the vehicle is 29 percent while it reaches 50 percent for SUVs. However, electric vehicles are taxed at the rate of five percent. The domestic sales of Bajaj Auto in the two -wheeler segment declined by 12 percent to 1,84,109 units in August, which was 2,08,621 units a year ago in the same period.
The TVS Motor Company said that in August this year, the sale of its domestic two-wheelers increased from 28 percent to 3,68,862 units from year to year. Premium motorcycle manufacturer Royal Enfield said its domestic sales last month had a strong growth of 57 percent to 1,02,876 units as compared to 65,623 units a year ago.
Suzuki Motorcycle India Private Limited sold a total of 1,13,936 two -wheelers last month, which is nine percent higher than 1,04,800 vehicles in the previous year. Language edited by: Sudhir Sharma
