We all are very aware of the sad state of affairs in the automobile industry. The domino effect is clear: the sales have declined drastically, leading to shutting down of outlets and people have lost jobs in shockingly high quantities.
This has resulted in poor numbers of the automobile production as well, and Maruti Suzuki’s sales have gone down by 34% and this is the seventh month in a row that the rate of production has fallen.
In an effort to change the saddened face of the automobile industry, the Union Government has put forth a proposal of cutting down the rate of GST.
Find out more about Maruti Suzuki’s declined sales and the Govt’s proposal right below!
Maruti Suzuki Reduces Production by 34%; Hatchbacks Affected The Most
Hatchbacks, which make up half the name of the Maruti Suzuki brand have been affected the most in this calamity. The sales have fallen by 34.4% at the domestic front at 97,061 units sold in August 2019. Whereas, the number was 147,700 in August 2018.
Cars such as Wagon R, Ignis, Swift, Celerio, Dzire, Baleno have clocked 54,274 units whereas August 2018 recorded a sale of 71, 364 units.
The decline in the total car sale has been reported to be 32.7% in August (YoY), which is a huge number. The total sale was 1,06,413, including exports and the sale has declined from last year’s 1,58,189 vehicles in August.
Govt. Suggests GST Rate Cut For Improving Conditions of Automobile Industry
The Union Government has come up with a solution for the dwindling state of the automobile industry – cut down GST rates. However, the decision is completely in the hands of the GST council, and the Union Govt will only put forth the proposal.
FM Nirmala Sitharaman said that the tax cut proposal will go to the GST Council where all the state finance ministers come together. It all depends on the call that they take. She said, “I have suggested to them (automobile makers) that I will take it to the Council but the final decision will be theirs… I will wait for the GST Council to take a call.”
If the GST Council approves this cut in GST, it will definitely change things for the automobile industry and help change the scenario for the better.
The ball is now in the GST Council’s court!
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