Automobile Sales Sluggish as Consumers Await Potential GST Cut

The automotive sector faces an unusual challenge this festive season. Typically, this period witnesses a surge in sales as people look to purchase new cars and bikes. However, this year, a significant drop has been observed. Dealers report that bookings and showroom traffic have decreased by as much as 25% since early August. This reluctance among potential buyers stems from the anticipation of a GST rate cut. Currently, a 28% GST applies to cars, but there is speculation that the government may reduce this to 18%. This potential price reduction is causing consumers to delay their purchases, hoping to benefit from the lower tax rate. The GST Council is expected to consider this matter in October, with potential changes to the tax structure that could impact the prices of various car models.