Key highlights:

  • Sales of premium and luxury sedans have doubled in July due to GST
  • The D1 car segment posted a 112% growth in sales in July
  • The D2 car segment Skoda Superb saw a 47.8% YoY growth in July

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The decision to pass on the lower taxes due to the implementation of the goods and service tax (GST) seems to have had a positive impact on the car sales, especially luxury sedans. Sales of premium and luxury sedans priced just below Rs 15 lakh and Rs 25 lakh, respectively, have doubled not only on a year on year basis, but from the previous month too.

A reason why luxury and large car makers have been against the GST Council's moves to increase the GST cess to 25% from the current 15%. As this will see a hike in the prices of these cars to even higher then pre-GST levels.

The D1 segment, which consists of premium sedans below Rs 15 lakh, and the D2 segment, which consists of luxury sedans below Rs 25 lakh have seen a huge jump in sales due to the price cuts offered by various manufacturers after the roll-out of GST on July 1.

Luxury car makers voice disappointment over GST Council's increase in cess

  • More car buyer upgrade to compact SUVs, mid-size sedans, premium hatchbacks
  • Car sales rise by 15% in post-GST month of July: SIAM