The sale of small cars to gst -cut can increase in double digits: HSBC

New -Delhi, September 21 (IANS). After implementing GST, the sale of cars at entry level in double digits can increase. This information was given in the report of HSBC research. “The segment of the passenger vehicle is expected to increase by double points annually during the upcoming festive season, while the growth in single points was before the GST deduction was announced,” the report states. New GST Reforms will be implemented from Monday. Below, taxes were reduced to 18 percent on gasoline trains of 1200 cc and 4 meters and diesel trains less than 1500 cc and 4 meters. This will now charge a 40 percent tax on the segment and capacity vehicles above, which used to be about 50 percent. The report is based on a conversation with more than ten traders from different geographical regions of India and a call to a large trader. The report said that Maruti Suzuki, the leading market business, announced his new price list following the announcement of GST cuts. As a result, both online and walking-these inquiries in different segments increased by 15-20 percent and this figure is even more for cars at entry level (K10, Celerio, S-RES and Wagon R) in Tier-1 cities. For the first time in the total booking so far, the share of car buyers has increased by 5-7 percent. The report further said that there is a good increase in the premium hatchback segment (Swift, Baleno, etc.). Maruti Suzuki announced a major reduction of up to 11-21 percent on its entry-level portfolio, 9-11 percent on premium hatchback and 8 percent on Brezza, which is much higher than a GST cut of 3.5-8 percent on these models. This will improve the entry-level segment and the Brezza will also remain competitive. The report said that the cost of Brezza with competitive models such as Nexon, Vennet and 3 XO after the GST cut increased by 5-6 percent, and that it should now become normal after the price reduction. Wagonr remains a pioneer in the segment of cars at entry level, although the percentage of yellow plate (CAB) has increased over time. Wagonr Tier 2 is strongly among the vehicle customers for personal use in cities. Interestingly, sales in Tier 1 cities began to decline last year, but after the announcement of GST deduction, the investigation and increase in discussion show that the tendency is now reversing. According to the report, the entry-level two-wheeler segment sees a good rise in the rural market and the investigation has increased by two points. Credit-based approvals have also increased over the past 1-2 months, which is positive for the sale of two-wheelers. -Ians abs/