GST may have been met with mixed response from across industries. For the automotive industry, however, it's been a stellar month thanks to GST. As reports flow in from across the spectrum of manufacturers each and every manufacturer has reported growth over last year. We suspect that this has to do with the flurry of discounts being offered across the spectrum. And that’s what the automotive industry did with the GST, they took something that was deep in the grey (GST) and turned it to their benefit. Starting with Pre-GST discounts that created a positive sentiment around the GST, and then following up by passing on tax-rebates to already eager customers. And the numbers speak for themselves, Topping the list so far, in terms of annual growth, is Toyota Kirloskar Motors, who sold 17.750 units in the Indian Market this year. Which is an almost stratospheric 43% over last year's 12404 units? That, of course, does not include the 1723 Toyota Etios’s that they exported this month. Toyota say’s it’s the new Innova that’s driving sales up, along with the effects of GST.
Mahindra & Mahindra have not done badly either, selling 41,747 vehicles this month. That’s a 6% growth over last year’s 39,458 units. Now for a company like Mahindra, with sales figures already this high 6% is more than enough reason to celebrate. Honda Motors India has also grown in terms of domestic sales of 17,085 units in July 2017 against 14,033 units in the corresponding month last year, registering a growth of 22%.
Meanwhile, Ford India whose figure is obviously not going to be as high as these three has also registered some growth, selling 8,418 vehicles this year as opposed to the 7076 units they sold in July last year. Although in terms of export sales, they did register a significant growth exporting 17,657 units as compared to the 10,666 units they exported last year.
Even Volkswagen have done better than last year , selling 4,753 units, constituting a 10.5% growth as compared to 4,301 vehicles sold in the corresponding month of the previous year. Which amounts to a total yearly growth of almost 13%, which is significantly higher than industry standard.
We are almost certain, the rest of the Industry will also be showing similar growth. This means the entire media circus that happened around “GST Impact” matched with the industry’s positive outlook and the almost unanimous reaction was one hell of a move.