Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Log in to CarWale

Please enter your password
Forgot password?
Please enter your registered email

Sign up to CarWale

Please enter your name
+91
Please enter your mobile number
Please enter your password
Please enter your password
Ad

GST Effect: June car sales to be down, July should hit record numbers

June 25, 2017, 05:10 PM IST by Omkar Thakur
GST Effect: June car sales to be down, July should hit record numbers

Now that GST is all set to be a midnight saga, car manufacturers have carved out a strategy that will ensure minimal effect on the dealers while keeping an eye on the annual targets nonetheless. As a result, since SIAM provides us with wholesale numbers only, June might be the slowest in the last decade while July might set new records.

The primary issue that both the dealers and the manufacturers are facing right now is that the tax credits of the existing tax structure will not be carried forward to the GST regime. The government says that while this will create issues in the short term, the effects will get nullified in the long term with no real difference to the end customer.

For big ticket purchases like cars, the immediate effects are considerable and hence car manufacturers have devised a strategy to circumvent the issue. Car manufacturers have stopped despatching cars to dealers earlier this month to help them clear their stocks before the onset of GST. Car dealers, on an average, maintain stocks enough for a month, which is the reason why many of them are offering discounts to clear their stocks before the end of the month.

This should certainly result in a spike in retail sales in the month of June but unfortunately, we will not be able to find out how much. The sales numbers published by carmakers are wholesale sales and since OEMs haven’t despatched cars for the better part of June, the sales numbers should ideally show a sharp dip. The wholesale numbers for July will be high as the manufacturer will push the July stock as well as make up for its June numbers. The sales trend is expected to normalise by August with the new GST compliant prices in effect.

 
Tags:Honda,Renault,Maruti Suzuki,City,Honda city,Renault KWID,KWID,Alto 800,Maruti Suzuki Alto 800
Show CommentsHide Comments
Ad

Renault Kwid Price in Popular Cities

CityOn-Road Prices
New Delhi₹ 3.12 Lakhs onwards
Hyderabad₹ 3.39 Lakhs onwards
Mumbai₹ 3.42 Lakhs onwards
Chennai₹ 3.38 Lakhs onwards
Bangalore₹ 3.47 Lakhs onwards
Kolkata₹ 3.34 Lakhs onwards
  • Upcoming Cars

Maruti Suzuki New ErtigaMaruti Suzuki New Ertiga

21 November 2018

7.80L - ₹ 12.40L
Mahindra Alturas G4Mahindra Alturas G4

24 November 2018

35L - ₹ 40L
Tata HarrierTata Harrier

January 2019

16L - ₹ 22L
Tata 45XTata 45X

March 2019

8L - ₹ 10L
Kia SPKia SP

July 2019

14L - ₹ 20L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free

Select your city to avail offers

Currently available only in