Car Makers Anticipate Surge in Demand Over Next Two Months Due to Tax Rationalisation

Stellantis India anticipates a surge in demand for cars over the coming months. The industry might outperform earlier forecasts this fiscal year, thanks to GST rate adjustments making small cars more affordable, according to Stellantis India CEO and Managing Director Shailesh Hazela. He noted that local R&D, manufacturing, and supply chain efforts have enabled Citroen to offer competitively priced vehicles.

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Citroen India recently introduced the Basalt X Range, featuring new interiors and India's first intelligent in-car companion, CARA, starting at Rs 7.95 lakh. "With Basalt X, we're bringing premium interiors and features that transform the everyday drive into something special," said Kumar Priyesh, Stellantis India's business head and director for automotive brands.

Festive Season Boosts Demand

The festive season, beginning with Onam and Ganesh Chaturthi and continuing through Navratra and Diwali, is expected to peak by late October. This period is seen as an ideal time for consumers to invest in new passenger cars, providing them with a fresh identity. Hazela believes this festive period will significantly boost the passenger car segment.

Hazela also highlighted the positive impact of government actions on GST. "The decision on GST is very good for the consumers," he stated. This move is expected to enhance demand by making passenger cars more accessible and affordable for many people.

Industry Growth Projections

Hazela predicts that the November-December period and the next quarter will outperform previous ones due to the festive season and GST 2.0 developments. "So I would say industry growth will be better than what we forecasted without this," he mentioned. The combination of these factors is likely to drive growth beyond initial expectations.

The introduction of the Basalt X Range signifies a significant step forward for Citroen's strategy in India. "Backed by our rapidly growing network, these launches signal a powerful new direction for Citroen in India," Priyesh added. This launch aligns with Citroen's vision of enhancing customer experiences through innovative offerings.

Overall, the combination of festive demand and favourable GST changes is set to invigorate the car market in India. As consumers look to make new investments during this period, car manufacturers like Stellantis are poised to benefit from increased sales and market presence.

With inputs from PTI