GST impact on Honda City, executive sedan becomes the best-selling model for first half of 2017

With the introduction of GST or Goods and Services Tax, Honda Cars India received an impressive response with the Honda City being the best-seller from the carmaker's stable

By:Updated: July 5, 2017 5:44:44 PM

GST or Goods and Services Tax has proven to be beneficial for the Indian automotive industry. Most carmakers passed on the benefits to customers even before the implementation of the new tax structure. Honda Cars India’s pre-GST offers where customers could avail discounts of up to Rs 1.31 lakh worked in favour of the company. The company sold 5,187 models of the City and 4,243 units of the WR-V, the largest contributors to the June 2017 sales. The Honda City is not just the highest-seller in June from the company’s stable, it has also taken the top spot and is the highest seller in the segment. The executive sedan has sold a cumulative of 34,125 units in the first half of this year. The Honda Jazz and Amaze were the next best contributors with 1,307 units of the hatchback sold and 1,193 units of the compact sedan in June 2017. Exports of 450 units also contributed a little to the sales growth of 12.2 percent last month.

Speaking on this occasion Yoichiro Ueno, President & CEO, Honda Cars India Ltd. said, “HCIL conducted a price protection in June to those customers who purchase cars before GST roll out in order to counter the sales challenge during the pre-GST period. It helped us maintain good sales numbers. We foresee that the GST rollout, good monsoon forecast and upcoming festive season will further improve the buyers’ sentiment. The 4th Gen Honda City reached yet another milestone in its successful journey in India, recording cumulative sales of over 2.5 lakh units in June 2017. City also became the highest selling mid-size sedan in H1 of 2017.”

Also Read: GST impact on cars: Tata Motors offering discount up to Rs 2.17 lakh on select models

The other contributors which received a lukewarm response were the BR-V which sold 567 units, Brio which clocked 283 units and a meagre sales figure of 24 units from the CR-V. The tax structure before GST was the inclusion of Excise Duty, NCCD (National Calamity Contingency Duty), VAT (Value Added Tax), CST (Central Sales Tax) and Infra Cess. Some states also levied state-specific taxes such as Octroi which are not a part of the current tax structure. Now, customers can be taxed on two aspects, GST and additional cess where the former is constant at 28 percent while the latter varies from one percent to 15 percent depending on the category for passenger cars.

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