Partho Banerjee, the Senior Executive Officer of MSIL, Marketing and Sales, says that the reforms associated with GST 2.0 drastically raised the consumer sentiment. Daily bookings that were formerly around 10,000 have soared to nearly 18,000 at a go.
What is interesting is that cities outside the top 100 are recording even greater growth rates, and there can be seen an almost double increase in bookings- it will be like a 100 per cent increase as compared to the previous rates.
Small Cars Lead the Charge
Small cars have been the biggest beneficiaries under GST 2.0 since the tax rate has been cut down to 18 per cent in contrast to the previously assumed 29-31 per cent. The segment has seen a 100 per cent increment in sales, which greatly exceeds the big cars.
Sales are also increasing steadily in the metro cities and have been estimated to be at 35-40 per cent. The new rates are set on cars that have a length below four metres and the petrol/CNG/LP engines up to 1200 cc and the diesel engines up to 1500cc.
Larger Cars are not that out of favour, but reduced margins
Even though bigger cars are also bestowed with discounted tax rates, the alleviation is smaller. Cars that have more than four metres now pay a reduced tax of 40 per cent as opposed to 43-50 per cent. This implies that the greatest drive will be on entry detail and the small automobile segment, where the advantages will start appearing to clients.
Push with Financing innovation and Push with the festival
Tax benefits are not all that Maruti Suzuki is stopping at. According to Banerjee, the company has given some more festive offers and is in the southern region, introducing a new finance option through which the purchaser can own an entry-level car at around 1999 per month EMI.
MSIL Company needs to promote penetration and from this pipe of the 2-wheeler owners changing to inexpensive mini-cars - only by featuring a large car as a status of ownership will more owners seek it.
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