Tata Motors reports 30% Dhanteras sales surge post-GST rate cuts
What's the story
Tata Motors, one of India's leading automobile manufacturers, has reported a 30% year-on-year (YoY) growth in sales during this year's Dhanteras. The surge comes after the government cut GST rates on vehicles, making them more affordable for consumers. The company is witnessing an increase in demand across all vehicle segments and expects to deliver over 25,000 vehicles during the Dhanteras and Diwali periods.
Delivery expectations
We expect to deliver over 25,000 vehicles during festive period
Amit Kamat, Chief Commercial Officer of Tata Motors Passenger Vehicles, said this year Dhanteras and Diwali deliveries are spread over two to three days according to auspicious mahurats. He added that overall demand has been strong and the GST rate cut has given a further push. Kamat said they expect to deliver over 25,000 vehicles during this festive period.
GST impact
GST rate cut on small cars boosts customer interest
The GST Council recently reduced the rates on cars under four meters long and with engines up to 1,200cc from 28% to 18%, while also removing the cess. This move has made vehicles cheaper and led to an increase in customer footfall at showrooms. Customers are now test-driving various models, especially small cars, thanks to this reduction.
Inventory increase
Dealers have increased their inventories to meet demand
In light of the increased consumer inquiries, automobile dealers across India have stepped up their inventories. They have placed up to 20% additional orders with original equipment manufacturers (OEMs) for passenger vehicles, two-wheelers, and commercial vehicles. This move is aimed at meeting the anticipated surge in demand during the festive season.