August 3, 2021 3:00:48 am
High cost of acquisition due to a variety of reasons, including higher GST than other major nations, is slowing down car demand and unless the Centre and states take steps to reduce it, the industry is unlikely to experience reasonable growth, as per Maruti Suzuki India Chairman R C Bhargava.
Addressing shareholders in the company’s Annual Report for 2020-21, he said after the second Covid wave hit the first quarter of FY22, the performance in next three quarters will depend on how effectively people get vaccinated.
“The GST on cars, based on the past rates of excise duty, is much higher than the GST (or equivalent) in all other major countries of the world. It is unlikely that the car industry will experience reasonable rates of growth unless the central and state governments consider how to reduce the initial acquisition cost of car,” Bhargava said.