Tata Motors President, Passenger Vehicles Business Unit, Shailesh Chandra said the reduction in vehicle prices would even help end customers who have been facing various pressures owing to the current state of the economy.
“Due to this transition from BS IV to BS VI, there has been a significant escalation in cost. In these trying times customers are not very confident about the outlook how the future is going to be including their salaries and jobs.
“On top of that there has been an increase in vehicle prices. It definitely impacts the industry immensely and any support by the Centre to reduce GST to offset some of the price increase will definitely boost the whole PV industry,” Chandra said, responding to a query if lowering of GST would help revive the industry. Automobiles attract GST of 28 per cent with additional cess ranging from 1 per cent to 22 per cent..
The Indian automobile industry leapfrogged to BS VI emission standards from BSIV from April 1 this year. While auto firms put in around Rs 40,000 cr to upgrade their facilities and products, the auto components industry chipped in with an investment of Rs 30,000 cr for the same.
Chandra said there has been a significant escalation in cost due to the transition from BS IV to BS VI emission regime.