GST reduction; festive discounts boost vehicle sales in Diwali

Chhatrapati Sambhajinagar:

The Central Government’s reduction in Goods and Services Tax (GST), effective from September 22, had a positive impact on the automobile market, especially during the festive season of Dussehra and Diwali. With the tax cut in place, customers flocked to buy their preferred vehicles, resulting in a 40 per cent increase in two-wheeler sales and a 25-30 pc rise in four-wheeler sales, compared to last year, said the Chhatrapati Sambhajinagar Federation of Automobile Dealers Association (CSFADA).

Following the GST cut, several automobile companies also announced additional discounts on their vehicles. As a result, customers received an overall 10–15 pc price reduction during Diwali. Many had already booked their favourite models ahead of the festival, taking advantage of the festive deals.

Rahul Mishrikotkar, CSFADA president, said that sales of all vehicle segments—two-wheelers, three-wheelers, four-wheelers (both passenger and commercial)—have increased compared to last year. In fact, dealers ran out of stock for several two-wheeler models. Two-wheeler sales rose by 25–30 pc, and four-wheeler demand increased by 15–20 pc. However, the demand outpaced supply, as companies were unable to deliver enough vehicles. One major issue was a shortage of containers used for transporting four-wheelers, which limited timely deliveries.

Govind Nirban of Ratnaprabha Motors mentioned that they received advance bookings for 500 cars, but were able to deliver only around 300 before the festival. Out of 250 commercial vehicle bookings, about 170 were delivered. Many customers who had planned to receive their vehicles on Diwali or Padwa were disappointed due to delayed deliveries.