High PV demand may last beyond festival season: Siam

The demand for passenger vehicles (PVs) is expected to sustain even beyond the ongoing festival season as a new set of customers, those who gained confidence to buy cars following the recent GST rate cuts, will begin to visit dealerships now, said Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (Siam), on Wednesday.

- DEEPAK PATEL

From September 22 onwards, small cars (less than four metres in length with engines up to 1,200 cc for petrol and 1,500 cc for diesel) attract 18 per cent GST, down from 29-31 per cent earlier, including cess. Under the new GST regime, larger cars (over four metres with engines above 1,500 cc and ground clearance above 170 mm) are now taxed at 40 per cent instead of the earlier effective 50 per cent. The Centre has also withdrawn the compensation cess.