The automobile industry is facing an unexpected hurdle during the festive season, a period usually marked by high sales. Dealers have noted a decrease in bookings and showroom visits, with figures showing a drop of up to 25 percent since the start of August. The primary reason behind this slowdown is the expectation of a reduction in the Goods and Services Tax (GST) on automobiles. The current GST rate on cars is 28%, but there are reports suggesting the government might lower it to 18%. If implemented, this would directly translate into lower car prices, prompting potential buyers to delay their purchases. The GST Council is expected to deliberate on this matter in October, with a revised structure possibly impacting the prices of small and mid-segment cars, as well as luxury vehicles.
