GST reforms will inject fresh growth momentum into the Indian automotive sector: SIAM

The recent GST rate cuts on automobiles will pave way for the growth momentum in the Indian automotive sector by making vehicles more affordable, industry body Society of Indian Automobile Manufacturers (SIAM) said on Thursday.

SIAM President Shailesh Chandra, while addressing the annual convention of the body, also welcomed the government's move to "suitably amend some of the procedural issues which would greatly help in supporting the ease of doing business".

"The automobile industry is immensely grateful to the government of India for the recent landmark decision to reduce GST rates on vehicles, which will bring renewed cheers to consumers and inject fresh growth momentum into the Indian automotive sector," Chandra added.

He further said, "Making vehicles more affordable, particularly in the entry-level segment, it will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

In the last fiscal year, the Indian automobile industry performed steadily across domestic and export markets, Chandra observed. Passenger vehicles recorded "the highest-ever sales of 4.3 million units, with a growth of 2 per cent over the previous year," he said.

Exports also saw an all time high 7.7 lakh units, registering a massive 14.6 per cent increase year-on-year.

Chandra also noted that the two-wheeler segment continued on its recovery path, reaching 19.6 million units and growing at 9.1 per cent, "though it is still below the earlier peak of 21 million, which was achieved in FY19".

Chandra also thanked the government for "suitably amending some of the procedural issues which would greatly help in supporting the ease of doing business".