The Federation of Automobile Dealers Associations (FADA) had the privilege of meeting the esteemed Minister of Road Transport and Highways (MoRTH), Nitin Gadkari Ji, to discuss pressing matters concerning India’s auto retail sector.
The occasion also served as a platform to cordially invite Gadkari Ji to grace the 5th Auto Retail Conclave as the Chief Guest. Scheduled on 14th September 2023 at Le Meridien, New Delhi, the conclave is anticipated to be a defining moment in shaping the future of auto retail in India.
Themed “Collaborate – Accelerate – Celebrate,” the conclave reflects the essential tenets for the resurgence and thriving of the auto sector. Collaboration emphasizes the industry’s commitment to forging alliances that strengthen the ecosystem, Acceleration embodies the rapid changes and advancements required to meet global standards, and Celebrate captures the achievements and milestones reached by the fraternity.
A pivotal aspect of the discussion was FADA’s submission of a request letter to the Minister, urging reduction of the Goods and Services Tax (GST) rate on entry-level two-wheelers, predominantly within the 100-125 cc segment from 28% to 18%.
Manish Raj Singhania, President of FADA, articulated the criticality of the issue by stating, “To propel India towards becoming a 47-trillion-dollar economy by 2047, every segment of our Automobile Industry must function at its zenith. With two-wheelers accounting for over 75% of the volume and 70%+ of this stemming from the entry-level category, it’s imperative to address the 20%+ decline we’ve observed since pre-Covid times. Reducing the GST from 28% to 18% for entry-level two-wheelers is more than just an economic strategy; it’s about empowering the common man and boosting rural mobility.”
While several categories within the auto sector have displayed commendable recovery post the Covid-19 pandemic, the entry-level two-wheeler sector remains notably affected. FADA believes that a GST revision would significantly alleviate the burden on potential buyers, especially in rural India, and catalyse the resurgence of this vital industry segment.
FADA remains committed to working collaboratively with the government to drive forward mutual growth aspirations for the Indian economy and the auto sector.