Members of the Society of Indian Automobile Manufacturers (SIAM) have met the Finance Minister of India to request the government to reduce the GST rate on automobiles from 28% to 18%.
Rajan Wadhera, President, SIAM has also reiterated the automobile manufacturers’ stand. Two-wheeler brands, including Hero MotoCorp, are also in support of this proposal.
The auto sector is in the midst of an unprecedented slow down. Sales have been falling for the last few months. Several dealerships have gone out of business, while other have reduced their workforce. Automakers have also cut production as demand for vehicles has slumped.
Earlier this week, we had reported that according to SIAM, vehicle sales have dropped by 12.35% in April-June 2019 compared to the same period last year. In the 18-month period that ended in April 2019, 286 dealerships in 271 cities were shut down, resulting in an estimated loss of 32,000 jobs.
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