Auto Industryhopes For Tax Cuts

What started off in July 2018 as a blip turned into a crisis by the end of last year and is now a catastrophe. Automobile sales in India registered a third straight month of double-digit decline in June and an eighth straight month that the industry has been in the red. In passenger vehicles, sales have now declined in 11 of the last 12 months. It is a run that is unprecedented for an industry that not too long ago was touted as the fastest growing in the world.

Sale of motorcycles, scooters, heavy trucks, buses and even tractors are all down in the dump. With a 33 per cent deficiency in rainfall, June was one of the driest ever recorded in India and the impact was felt on sale of tractors.

The industry that is one of the most taxed, with GST ranging between 28 and 50 per cent, is hoping for some relief from the government.