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No immediate need for GST rate cut: Maruti

The automaker's rural sales in Q2FY21 were strong in the wake of a good rabi crop and now accounts for 41 per cent of total sales from 38.6 per cent a year back.

By: ENS Economic Bureau | New Delhi | October 30, 2020 1:21:06 am
Maruti Suzuki chairman RC Bhargava.

Maruti Suzuki chairman RC Bhargava said Thursday demand for cars is reasonably robust on the back of pent-up appetite and good purchasing power in rural India. Consequently, he believes there is no need for a cut in Goods and Services Tax rates just yet.

Bhargava was quoted by PTI as saying: “… if I was in the government at this time when there is no lack of demand, giving relief at this stage would be quite unnecessary.” In case demand falls and if it looks like that it is not a temporary thing but sustained dip in demand that is when the government will need to step in, he added.

“I am selling everything I am producing. If the GST went down and demand increased by another 30 per cent I won’t have cars to sell,” he said, as per PTI.

The automaker’s rural sales in Q2FY21 were strong in the wake of a good rabi crop and now accounts for 41 per cent of total sales from 38.6 per cent a year back. For the September quarter, Maruti posted a net profit of Rs 1,372 crore, up 1 per cent year-on-year. Net sales rose 10.4 per cent y-o-y to Rs 18,744.5 crore.  —FE & PTI

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