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Small Car Sale: GST cut is making the return of small cars like Alto K10 and WagonR in the market with much fanfare. A tremendous boom is being seen in the sales of small cars during the festive season.
GST on small cars has been reduced from 28% to 18%.New Delhi. Sales of small cars like Maruti Alto in India had been declining for some time. It was believed that the reason for this was people’s disillusionment with them and the increasing attraction of big vehicles. Some time ago, Maruti Suzuki Chairman R.C. Bhargava had expressed concern that the prices of entry-level cars were increasing and they were becoming out of reach for common customers. But, at that time many people took this comment lightly. But, now after the GST cut, the way the prices of small cars have come down, the way their sales have started, has proved that these cars are still in the hearts of the people, just because of the high price, people have started shying away from buying them.
GST cut cost my life
According to Partho Banerjee, Senior Executive Officer, Sales and Marketing, Maruti, according to a report in The Times of India, “We noticed that many helmets were kept in the showroom — a clear indication that two-wheeler owners are now coming to buy their first car. This influx of new buyers is reviving the small car segment.” He said that the share of entry level models in our total retail sales has increased from 16.7% before GST 2.0 to 22.2% now.
Small cars of Tata Motors are also selling well.
The increased demand in small cars is not limited to Maruti only. Tata Motors has also seen a huge jump in sales during the festive season. Amit Kamat, Chief Commercial Officer, Tata Motors, says, “Our hatchback cars Tiago and Altroz have been booked this festive season 45% more than last year. The increase in both bookings and deliveries is clearly visible.”