The five major companies in India’s luxury car market are Mercedes, BMW, Audi, JLR and Volvo.
Due to the high rate of Goods and Services Tax (GST), import duty and registration tax, the country’s luxury car segment is not moving forward and the government should cut their rates in the upcoming budget. German luxury car company Audi has made this demand. In the last year i.e. 2019, the company’s sales fell by 28.92 per cent to 4,594 units, which was 6,463 units in 2018.
Audi India’s head Balbir Singh Dhillon told PTI that sales of all companies in the luxury vehicle sector have come down over the past year. Dhillon said, “Luxury car sales have been affected due to high GST rate, import duty and registration tax.” Because of this, the total market share of the luxury car market has come down to just 1.2 percent. ”
Council to cut GST
He said that the sales of each major company in the luxury car market has decreased last year. Dhillon said that in such a situation we ask the government-GST council to cut GST rates. Apart from this, the import duty should also be reduced and the cost of registration for luxury cars should be rationalized.
Loans are easily available
Dhillon said that if loans are easily available from banks and NBFCs, then it will be better for the whole industry, as this will increase demand. On the other hand, the government’s focus is much more on electric vehicles. However, there are not enough charging stations for this. In order to develop a better ecosystem for electric vehicles, the charging infra must be sufficient.
Apart from this, plug-in hybrid cars also need to be incentivized by reducing GST rates, cutting import duties and registration tax.
5 major companies in the luxury market
The five major companies in India’s luxury car market are Mercedes, BMW, Audi, JLR and Volvo. The total sales of these companies in 2018 were 40,340 units. The sales figure is expected to come down further in 2019. Many companies have not yet released their sales figures in India.
Luxury car market leader Mercedes-Benz retail sales fell 11.28 per cent to 13,786 units in 2019. Whereas in 2018, the company sold 15,538 cars. At the same time, sales of its German competitor BMW fell 13.8 per cent to 9,641 units in India last year from 11,105 in 2018.
Source – Financial Express