If there is any industry to have fully capitalised on the GST, it has to be the automotive industry. Starting with the pre-GST stock clearance that started with the German Luxury car Marques’ in June and continued all the way to post-implementation discounts from almost all major players across the spectrum.
Mahindra and Mahindra have already announced some discounts in across their range, ranging from a 1.4% rebate on their smaller vehicles to a more significant 6.9% on their Utility Vehicle range.
However, Mahindra, who is the only Indian manufacturer to currently have an electric vehicle in their range, and have plans to broaden that horizon, have expressed doubts in the long-term progress to that end.
Speaking on the GST, Mr Pawan Goenka said that the transition to GST from the current tax slab has been “surprisingly smooth” he added further that the growth spurt that the industry was partially fueled by the restoration of normal inventory at dealerships as well as the price reductions being offered across brands.
As far as Hybrids and all electrics go, Mr Goenka says that the added burden on electric vehicles has forced companies into a corner, which would make it hard for someone to consider making the switch with no support from the center. Adding that most players with aggressive growth plans in this field would be forced to reconsider.