Maruti Suzuki Chairman RC Bhargava Mentioned Of This Not Being The Right Time To Cut GST On Cars And Vehicles.
So far, the domestic automobile sector has been demanding 18 per cent GST rates of 28 per cent on cars to increase sales. However, the chairman of Maruti Suzuki India, the country’s largest car maker, RC Bhargava, spoke on the contrary and talked about not reducing the rates. However, Maruti has also been demanding a cut in GST rates earlier.
Not the right time to lower the rate
Maruti Suzuki Chairman RC Bhargava mentions this is not the right time to reduce the rate of goods and services Tax (GST) on vehicles at present. At the same time, it is not going to benefit because the production of the vehicle industry is at the lowest level at present. During a video conference, Bhargava said that the production of all automobile manufacturers is going to be very low for at least next month or two months in the time. There will be no point in GST deduction at such times.
Important meeting with the Government
In a recent meeting with the Centre of Auto Sector Veterans, a number of suggestions were made to revive the sector. Bhargava was also involved in the meeting. The benefit of the cut will be when the production is at its peak and there will be more supply than demand. Then we will need it. But, immediately, the industry does not need it. He mentions.
Second line production begins soon
Maruti, who has a share of 54 per cent in the domestic passenger market, says that if any reduction in the rate of taxes is proposed, it should be done at the right time. Bhargava said that he has started production at Manesar. Second line production will also be launched in Gurgaon soon. The Gujarat-based plant has not yet been commissioned due to Maruti’s transition to the state.
2,300 cars delivered
There is still uncertainty about the supply of components as many areas are still in the entertainment zone. While one-third of the dealers have opened their showrooms after the lockdown was relaxed, 60 per cent are in rural areas, expressing hope that the remaining two thousand dealers will start their operations soon. He said that so far, out of 5000 orders, 2,300 cars have been delivered already. Almost 1,900 workshops have started their work, but they are not able to function completely and fully due to the lockdown owing to COVID-19 crisis.
