By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts Cookies Policy.
Car Sales in India to Grow by 9% in 2017: Report
New Delhi, Sept 20: The roll-out of Goods and Services Tax (GST), despite hurting a major section of the economy in the short-run, provides a glimmer of hope for the automobile makers. According to a
New Delhi, Sept 20: The roll-out of Goods and Services Tax (GST), despite hurting a major section of the economy in the short-run, provides a glimmer of hope for the automobile makers. According to a recent study, the car sales in India are expected to boost by 9 per cent, as the manufacturers would reduce prices due to the replacement of all indirect taxes with a single GST.
Highlights
- Car sales are expected to soar by 9% this year, 7% in 2018.
- Meanwhile, the global auto sales are expected to dip by 3.6%.
- China, India's economic rival, is predicted to witness growth in car sales by 3%.
“Indian car sales will remain robust, growing 9 per cent this year and 7 per cent in 2018, supported by the impact of India’s new goods and services tax (GST) as well as new model launches,” claims the report released by Moody’s Investors Service on Wednesday.
According to the study, the abolition of a “web of indirect taxes” through GST roll-out have already prompted some automakers to reduce the prices of passenger vehicles.
The reduction in prices, the report adds, would boost the sale of vehicles in the upcoming quarter. “Looking ahead, new model launches by domestic and foreign automakers and a seasonally stronger second half support our expectation that India’s auto sales in 2017 will touch the 3.6 million unit mark,” it states.
While Moody’s predict a strong surge in sale of cars in India, it predicts a downfall for automobile sector on the global scale. The study says that car sales would drop by 3.6 per cent in 2017, followed by 0.6 per cent in 2018. In the near future, however, it expects a recovery of demand in the US market, as customers would seek to replace their vehicles wrecked by Hurricane Harvey and Irma.
After India, the report predicts a strong demand for cars in the Japanese market, where the automobile sale is expected to grow by 5.6 per cent this year. In China, the report claims, auto sales will grow by 3 per cent in 2017, followed by 2 per cent in 2018.
Also Read:
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.