After increasing GST benefits for its passenger vehicle customers, Tata Motors has now announced that it will increase the profit under the new tax slab for its commercial vehicle business. After the GST roll, the company has decided to give full benefits to the customers at the pre showroom prices. The commercial vehicle category of Tata is for cargo with a reduction in the price between 0.3% and 4.21%, while commercial vehicles for passenger transport will show a decrease between 0.6% and 8.2%.
In a statement, Girish Wagh, Head of Commercial Vehicle Business Unit said, “We wholeheartedly welcome the Central Government to launch GST for bringing uniform tax across the country, which will give significant benefits to the country. Increasing the ease of business and the economy and profit for the stakeholders. We have full confidence that the reduction in price after GST will help the customers Will bring the deficit and boost demand in return. ”
Tata Motors’ efforts should help in improving commercial vehicle sales by reducing prices. The company registered positive numbers in June 2017 on a single month basis. However, sales were still down 2% in comparison to June 2016, but this was an indication of the increase for the fall in numbers coming in the first half of this year. Good sales were mentioned due to ramps in the production of BS-4 vehicles and the total production increased in different areas.
In relation to passenger vehicle sales, Tata Motors saw a 5% drop in June 2017, which has been a very positive year for the car manufacturer. The company cited uncertainty on the new GST norms as the main reason behind the decline in sales is. However, with the reduction of an overall value in its passenger vehicles, the volume is expected to be taken once again, the Indian car manufacturer is also preparing to present its much-awaited Nexus subcompact SUV around the festive season.