Sale of Passenger Vehicles Grew Merely by 2.70% over April-March 2019

As per Society of Indian Automobile Manufacturers (SIAM), the sale of passenger vehicles registered a growth of mere 2.70 per cent in April-March 2019 as compared to same time last year. This comes at the back of high vehicle fuel prices, high GST as well as increased insurance costs, which has impacted the overall passenger vehicle industry.

Within passenger vehicles, the sales of cars grew by 2.05 per cent, utility vehicle and vans grew by 2.08 per cent and 13.10 per cent respectively. Although overall, the automobile exports grew by 14.50 percent in April-March 2019, passenger vehicles exports declined by 9.64 per cent, whereas the commercial vehicles, three wheelers and two wheelers registered a growth of 3.17 percent, 49.00 percent and 16.55 percent respectively in April-March 2019.

As per media reports President Rajan Wadhera, SIAM wants the government to be sensitive to the fact that BS-VI emission introduction (from Apri1, 2020) and other safety regulations will add to the cost. If it adds to the cost it is likely to lead to slowdown in the demand. He urges government to cut GST on passenger vehicles and two-wheelers from current 28 per cent to 18 per cent, which according to him would be a win-win situation, considering it would pick up the slowing demand as well as government collection of taxes.