A transparent image relating to new GST rates at the earliest will help the general auto business, together with the luxurious automotive section, to regain momentum in the ongoing quarter, which typically sees enhanced sales on account of the festive season.
The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to talk about transferring to a two-slab taxation.
In an interplay with PTI, BMW Group India president and CEO Hardeep Singh Brar stated the current hypothesis about the change in GST rates has brought about uncertainty in the minds of customers.
Consumer curiosity and demand is powerful, however they (potential consumers) have adopted a wait-and-watch method, and this delayed decision-making is impacting new car sales at a sure degree, he famous.
“Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector’s contribution to economic growth during this quarter is robust,” Mr. Brar acknowledged.
He additionally hoped that the sustainable push in direction of electrical automobiles will proceed to be inspired as a precedence and can replicate in the GST technique by retaining the current 5% GST on all passenger electrical autos.
An adversarial affect from GST rates can derail the imaginative and prescient of excessive electrical adoption and native manufacturing in India, he added.
Mr. Brar famous that the firm is geared to introduce a number of mannequin trims throughout the competition season.
Audi India Head Balbir Singh Dhillon acknowledged that the luxurious carmaker is getting into the festive season with regular momentum and a constructive outlook.
“Post the GST clarification expected in the first week of September, we expect consumer confidence to grow and demand to increase across our product range— particularly for our SUVs, which continue to attract customers,” he famous.
With an thrilling product portfolio and robust buyer engagement, the automaker is assured of sustained progress all through this competition interval, Mr. Dhillon stated.
Mercedes-Benz India MD and CEO Santosh Iyer stated the festive seasonality is very anticipated by clients and the firm will roll out an built-in marketing campaign subsequent week, addressing clients’ aspirations.
“We expect this festive season to bring in impetus and drive sales as this is the right time, owing to positive customer sentiment and a refreshing new portfolio on offer,” he added.
Commenting on the general enterprise state of affairs in the luxurious automotive section, Icra senior vp and group head, Corporate Ratings Jitin Makkar stated the sales throughout the festive season this 12 months is anticipated to develop solely in the mid-single digits, as commerce headwinds emanating from the affect of excessive US tariffs are seemingly to dampen enterprise sentiment.
Between FY22 and FY25, the luxurious automotive section outpaced the broader passenger car market, pushed by sturdy aspirational demand throughout numerous demographics, together with youthful and first-time consumers, he added.
“However, this trend is poised to reverse in FY26. A potential GST rate cut on smaller cars could stimulate demand in the mass-market segment, while the luxury segment may face a more subdued environment,” Mr. Makkar stated.
Already, in the first half of CY2025, progress in luxurious automotive sales has been tepid, weighed down by geopolitical tensions and inventory market volatility, he stated.
“Although festive season buying may lift volumes sequentially, overall growth for the full year is likely to remain muted,” he added.
The festive season often commences with Onam and ends with Diwali yearly.
