The Ministry of Heavy Industries (MHI) has directed automobile companies to display posters at all dealerships showcasing a comparison of old and new prices following the recent GST rationalisation. The directive, routed through the Society of Indian Automobile Manufacturers (Siam), also requires the posters to feature Prime Minister Narendra Modi’s photograph.
Industry Faces Compliance Challenges
Car and two-wheeler manufacturers are currently designing posters and sending them to the ministry for approval. A key concern is whether posters in regional languages will need separate clearance, or if approval for the master English version will suffice. Industry executives also raised questions about who will bear the cost — companies, dealers, or both.
Estimated Spend Of ₹20–30 Crore
According to industry estimates, the automobile sector may collectively spend at least ₹20–30 crore on this exercise. Posters are expected to be displayed at dealerships nationwide by the end of this week. Interestingly, luxury car companies have been exempt from the mandate, with the focus firmly on mass-market vehicles.
Direct Benefit For Consumers
For buyers, the posters are expected to provide greater transparency on price reductions. With the GST Council cutting taxes on small cars from 29–31% to 18% and on larger cars from 50% to 40%, customers stand to benefit significantly. Major carmakers including Maruti Suzuki, Hyundai, Tata Motors, Toyota, and Mahindra have already announced price cuts across their portfolios.
Political & Market Implications
While the move ensures consumers directly see the benefits of GST rationalisation, the posters also serve as a political communication tool by linking the tax relief with the Prime Minister’s image. Industry executives believe this is an unprecedented directive that could set a precedent for similar exercises in other consumer-focused sectors.
