GST Rate Cut Can Spur Demand: Hyundai Motor India

GST rate cut can spur demand: Hyundai Motor India
GST Rate Cut Can Spur Demand: Hyundai Motor India

Kim added that combination of various challenging situations" such as preparation for transition to BS-VI emission and new safety norms, credit crunch for vehicle loans, increase in insurance fees and low sentiments among customers in terms of their economic confidence, to be responsible for the current slowdown in the automobile sales.

 

The Indian auto industry is reeling under a severe sales slowdown and Hyundai Motor India Managing Director and Chief Executive Officer S S Kim feels that the goverment must resort to a GST rate cut, which can help bring back growth to the industry.

According to a PTI report, the Hyundai Motor India senior official said although the festive season may be a huge opportunity for automobile manufacturers to look forward for better sales, government intervention in the form of GST rate cut restore growth this year.

Kim added that combination of various challenging situations" such as preparation for transition to BS-VI emission and new safety norms, credit crunch for vehicle loans, increase in insurance fees and low sentiments among customers in terms of their economic confidence, to be responsible for the current slowdown in the automobile sales.

He was quick to point out that the prevailing slowdown is a cyclical phenomenon and not a structural one.