GST implementation has positive effect on automobile industry in India. Immediately after announcement of GST, the leading automobile giant in India, Tata Motors has announced price reduction in its passenge vehicles of upto 12%.
Commenting on the price reduction, Mr. Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, “We whole-heartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry. Following the roll out of GST, we have decided to pass on the entire benefit to our customers. We are offering a price reduction of upto 12% ranging between INR. 3300 and INR. 217000 depending on the model and variant. With a strong focus to encourage positive buying sentiments, we have taken this step.”
Tata Motors has also passed on the benefit in commercial vehicles segment also to its customers by lowering the prices upto 8.2%.
Commenting on the price reduction, Mr. Girish Wagh, Head of Commercial Vehicle Business Unit, Tata Motors said, “We whole-heartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will bring about significant gains to the country’s economy and advantages for the stakeholders, while enhancing the ease of doing business. Following the roll out of GST, we have decided to pass on the entire benefit to our customers in the ex-showroom prices. We are offering a price reduction in commercial vehicles (cargo) in the range of 0.3% to 4.21% and in commercial vehicles (passenger transportation) in the range of 0.6% to 8.2%. We are confident that the post GST price reduction will enable the customers to bring down their cost of operations and in turn, boost demand.”
