<p>New Delhi: Speculation about reduction in goods and services tax (GST) has impacted sales of cars as customers are postponing the purchase in anticipation of reduction in price, Venkatram Mamillapalle, Managing Director and CEO, Renault India, said on Sunday.</p>.<p>“Everybody’s anticipation is that if GST goes down, the value of the car will also go down. So those people who can wait, they are waiting,” Mamillapalle told reporters at a company event.</p>.<p>He said the time gap between the announcement and the possible rate gap has impacted auto sales. “It’s a good and positive thing for the public...Response would have been much much better for both OEMs and customers if the time gap was less,” he said.</p>.<p>The announcement about the GST reforms and reduction in rates was made by Prime Minister Narendra Modi on the occasion of the 79th Independence Day.</p>.Beer consumption set to double every 3 years.<p>The GST Council, which is mandated to take decisions on the GST-related matters including rate cuts and reforms, is scheduled to meet on September 3-4 in New Delhi. During the meeting, the Council is widely speculated to agree on a rate rationalisation proposal to bring down the majority of the products in the 28% tax slab to a lower slab of 18%.</p>.<p>At present, cars are taxed at 28% standard GST plus cess. There is wide speculation of a 10 percentage point reduction in the tax on small cars. This means a car, which is currently priced at Rs 7 lakh may get cheaper by upto Rs 70,000. However, it will depend on input tax credit and other factors.</p>.<p>On the outlook for the auto industry, Mamillapalle said the GST reduction would give a much needed push to the auto sector.</p>.<p>He said Renault India has sufficient capacity to produce additional vehicles if the lower taxes result in higher demands. “We are operating at 50%, so there are no issues on capacity,” he said.</p>.<p>Renault India on Sunday launched ‘New Kiger’ a sub-four metre sports utility vehicle (SUV). The fully loaded Turbo variants of Kiger - Techno and Emotion are priced between Rs 9.99 lakhs and Rs 11.29 Lakhs (ex-showroom), while the more accessible naturally aspirated engine variants are available between Rs 6.29 lakhs and Rs 9.14 lakhs (ex-showroom).</p>.<p>“Renault Kiger has shaped expectations in the compact SUV segment with its aesthetic design, modern details, and bold stance combined with the lightweight CMFA+ platform,” said Francisco Hidalgo, vice president, sales and marketing, Renault India.</p>
<p>New Delhi: Speculation about reduction in goods and services tax (GST) has impacted sales of cars as customers are postponing the purchase in anticipation of reduction in price, Venkatram Mamillapalle, Managing Director and CEO, Renault India, said on Sunday.</p>.<p>“Everybody’s anticipation is that if GST goes down, the value of the car will also go down. So those people who can wait, they are waiting,” Mamillapalle told reporters at a company event.</p>.<p>He said the time gap between the announcement and the possible rate gap has impacted auto sales. “It’s a good and positive thing for the public...Response would have been much much better for both OEMs and customers if the time gap was less,” he said.</p>.<p>The announcement about the GST reforms and reduction in rates was made by Prime Minister Narendra Modi on the occasion of the 79th Independence Day.</p>.Beer consumption set to double every 3 years.<p>The GST Council, which is mandated to take decisions on the GST-related matters including rate cuts and reforms, is scheduled to meet on September 3-4 in New Delhi. During the meeting, the Council is widely speculated to agree on a rate rationalisation proposal to bring down the majority of the products in the 28% tax slab to a lower slab of 18%.</p>.<p>At present, cars are taxed at 28% standard GST plus cess. There is wide speculation of a 10 percentage point reduction in the tax on small cars. This means a car, which is currently priced at Rs 7 lakh may get cheaper by upto Rs 70,000. However, it will depend on input tax credit and other factors.</p>.<p>On the outlook for the auto industry, Mamillapalle said the GST reduction would give a much needed push to the auto sector.</p>.<p>He said Renault India has sufficient capacity to produce additional vehicles if the lower taxes result in higher demands. “We are operating at 50%, so there are no issues on capacity,” he said.</p>.<p>Renault India on Sunday launched ‘New Kiger’ a sub-four metre sports utility vehicle (SUV). The fully loaded Turbo variants of Kiger - Techno and Emotion are priced between Rs 9.99 lakhs and Rs 11.29 Lakhs (ex-showroom), while the more accessible naturally aspirated engine variants are available between Rs 6.29 lakhs and Rs 9.14 lakhs (ex-showroom).</p>.<p>“Renault Kiger has shaped expectations in the compact SUV segment with its aesthetic design, modern details, and bold stance combined with the lightweight CMFA+ platform,” said Francisco Hidalgo, vice president, sales and marketing, Renault India.</p>