In a significant decision to support the automobile sector, the government has reduced the Goods and Services Tax (GST) to 18% on small cars, compact SUVs, and bikes with engine capacities under 350cc. This tax cut comes as a relief to both manufacturers and consumers, making entry-level vehicles more affordable and increasing their market appeal.
The decision is expected to drive higher sales in the budget vehicle segment, especially among first-time buyers and middle-class consumers. Popular commuter bikes, scooters, and compact cars will see reduced prices, encouraging more people to invest in personal transportation. This move also aligns with the push towards fuel efficiency, urban mobility, and improved accessibility for a larger section of the population.
Automobile manufacturers anticipate a rise in demand, especially ahead of the festive season, which typically sees a spike in vehicle purchases. With the new 18% GST rate replacing the higher slabs previously applicable, both two-wheeler and small car segments are set to benefit significantly.
This policy change could also help revive the automobile industry, which has seen fluctuating demand due to economic uncertainties and changing consumer preferences.
#GSTCut
#18PercentGST
#SmallCars
#BikesUnder350cc
#AffordableVehicles
#AutomobileNews
#VehiclePriceDrop
#CompactSUVs
#TwoWheelerNews
#AutoSectorGrowth
#VehicleTaxReduction
#BudgetCars
#IndianAutoMarket
#BikePriceDrop
#CarPriceReduction
