Rajan Wadhera, President of SIAM, the apex body of automobile manufacturers in the country has strongly emphasized that all the players in the passenger car, commercial vehicle as well as two/three-wheeler segments are united in seeking a reduction in the GST rate from 28% to 18%.
Wadhera was reacting to media reports that some auto industry leaders, do not agree to the SIAM proposal for GST reduction on vehicles. In a press release, SIAM maintained that the automotive industry is currently facing a daunting challenge of a deep slowdown that urgently needs some form of stimulus from Government to supplement the efforts being made by the industry in reversing the industry fortunes towards positive performance. “Even in the past the Government has offered stimulus to propel growth and it has reversed the growth in the positive direction. In addition to the reduced demand today, new safety and emission norms that would come into play in the next few months would further drive up the cost of vehicles, leading to further pressure on demand. A reduction in the GST rates would go a long way in maintaining the price competitiveness of the industry and boosting the consumer demand,” Wadhera said.