Luxury car manufacturers in India seek clarity on revised GST rates at the earliest.
View Personalised Offers on
Check OffersPrime Minister Narendra Modi, during his speech on August 15, hinted that the government is working on a simplified and restructured GST regime, which would be implemented during this festive season. Under this regime, the GST rates would be revised for automobiles, bringing down the tax rates for both mass-market and luxury vehicles. However, the government is yet to announce the revised rates. In such a situation, luxury car manufacturers like Audi, BMW and Mercedes-Benz believe that a clear picture regarding the new GST rates at the earliest would help the overall auto industry to regain momentum in the ongoing quarter.
The auto industry in India generally registers enhanced sales numbers on account of the festive season every year. Reduced GST could further boost that. However, there is no clarity on the final tax rates yet, which is still keeping many customers as well as the automakers in confusion. The GST Council, charied by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a dual-slab taxation structure. Post that meeting the new tax rates are expected to be announced.
Carmakers seeking clarity on restructured GST rates at earliest
Speaking to PTI, In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers. He noted that consumer interest and demand are strong, but the prospective buyers have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level. “Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector’s contribution to economic growth during this quarter is robust,” Brar stated.
He also hopes that the sustainable push towards electric cars would continue to be encouraged as a priority and would be reflected in the GST strategy by retaining the existing 5 per cent GST on all passenger electric vehicles. The BMW India official also said that an adverse impact from GST rates can derail the vision of high electric adoption and local production in India, while also noting that the company is geared to introduce several model trims during the festival season.
Audi India Head Balbir Singh Dhillon stated that the company is entering the festive season with steady momentum and a positive outlook. “Post the GST clarification expected in the first week of September, we expect consumer confidence to grow and demand to increase across our product range – particularly for our SUVs, which continue to attract customers,” he noted. Dhillon further added that with an exciting product portfolio and strong customer engagement, BMW is confident of sustained growth throughout this festival period.
Mercedes-Benz India MD & CEO Santosh Iyer said the festive seasonality is highly anticipated by customers, and the company will roll out an integrated campaign next week, addressing customers’ aspirations. “We expect this festive season to bring in impetus and drive sales as this is the right time, owing to positive customer sentiment and a refreshing new portfolio on offer,” he added.
Check out Upcoming Cars in India 2025, Best SUVs in India.
First Published Date: 31 Aug 2025, 13:17 pm IST
