Car Buyers Withholding Their Purchases Due To Potential GST Cuts?
Cars are set to be more affordable particularly the small cars and two-wheelers with changes from 28% to 18% and SUVs particularly getting cheaper from 45% currently to 40%.
Car buyers might be holding onto their bookings in anticipation of GST cuts making cars more affordable. Buyers are taking a wait and buy approach with new GST cuts on the horizon. Dealerships have been getting high enquiries but bookings have seen a nosedive. Cars are set to be more affordable particularly the small cars and two-wheelers with changes from 28% to 18% and SUVs particularly getting cheaper from 45% currently to 40%.
Hence, expect popular cars like the Maruti Wagon R or the Baleno to be cheaper while even SUVs like the Mahindra Scorpio N to the Hyundai Creta could be cheaper too. These changes will mean healthy price cuts and saving for customers as well as drop in EMIs with as much as Rs 60,000 price cut being expected from small cars or hatchbacks while SUVs could see a price cut of more than a lakh in certain cases. However, these GST cuts need to be in the picture earlier with carmakers noticing GST related uncertainties affecting bookings.
Thus the festive season cheer might be off to a rocky start as of now but carmakers could bring in discounts to offset that and lure buyers in while before the festive season implementation means carmakers can breathe easy! The GST council will meet on September 3/4 in New Delhi and will take these decisions in terms of the proposed GST rate cuts. Overall though this will give the auto industry cheer and push positive buyers sentiment with more taking the plunge to buy a car. Buyers are awaiting a drop and also waiting for the same while the coming days will bring more clarity on the same.
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