Automobile Industry Braces for GST Reform: Possible Price Adjustments for Cars and Motorcycles

The automotive sector is anticipating significant changes due to the proposed GST reforms. The changes could influence consumer choices and market dynamics. The current tax structure on small cars, which includes a 28 percent GST and cess, is likely to be revised to an 18 percent GST rate. Luxury cars and SUVs, on the other hand, may face increased taxation. Furthermore, entry-level motorcycles are also expected to benefit from the changes, potentially resulting in reduced prices. Car manufacturers might consider introducing more cars below 1200cc to gain from the change in GST rate.