GST Impact On Auto Sector: Bookings On But Final Prices Not Available Yet

The Goods and Services Tax (GST) was a step meant to streamline processes, in India; and while businesses are trying their best, to keep up with the change, so are consumers. This is the one reason why we have been continuously updating you, with the latest developments and giving you all the details, about the new prices, of both two-wheelers and four-wheelers. Though price reduction spells joy, for consumers and dealers, there are a few days of inconvenience that lie ahead.

To begin with, there's still no price list that has been issued, by the OEMs, on the final price of the product post GST. However, bookings of vehicles are in full swing. An associate, from Spectra Motors, Mumbai, dealers of Maruti Suzuki cars, said that bookings, for cars, is being accepted; but the consumers are yet to get the final price, for the product; and that will come only by 5th July. In fact, a number of dealers, across automobile manufacturing sectors, have been giving us a similar response.

Modi Hyundai, Mumbai is the only dealer, who has put bookings on hold, across the portfolio of cars. It's only once the final price is available, will the dealer open bookings, once again. Satyam Ford and Navnit Motors, in Thane, too have seen a drop, in footfall, in showrooms; but both are optimistic, about the way things will eventually turn out. "It's June, so usually people do not buy cars, in this season; so we were expecting a slump, in sales. Yes, GST has played a role, in bringing down sales further and we even had to get our billing section, in order, but it's just for a few days." a sales executive from Navnit Motors, said.

The situation is similar, across cities. We contacted Renault Mount Road, in Chennai, where we were told that the final prices of the cars will be out tomorrow, but bookings for the cars continue. It is the same situation in Delhi too; but dealers are promising consumers that the prices will be out by the end of this week.