Government support in GST cut to aid entire PV industry: Tata Motors

Any kind of support from government in terms of GST reduction would help passenger vehicle segment immensely as it would negate some of price increase in vehicle prices due to shift to stricter BS-VI emission rms, according to a top Tata Motors executive.

In an interview with PTI, Tata Motors President, Passenger Vehicles Business Unit, Shailesh Chandra said reduction in vehicle prices would even help end customers who have been facing various pressures owing to current state of ecomy.

"Due to this transition from BS-IV to BS-VI, re has been a significant escalation in cost. In se trying times, customers are t very confident about outlook of how future is going to be including ir salaries and jobs.

"On top of that, re has been an increase in vehicle prices. It definitely impacts industry immensely and any support by government to reduce GST to offset some of price increase will definitely boost whole PV industry," Chandra ted.

He was replying to a query wher lowering of GST would help revive industry.

Indian automobile industry leapfrogged to BS-VI emission standards from BSIV from April 1 this year.

While auto companies put in around Rs 40,000 crore to upgre ir facilities and products, auto components industry chipped in with an investment of Rs 30,000 crore for same.

Chandra said re has been a significant escalation in cost due to transition from BS-IV to BS-VI emission regime.

It (reduced GST) will help consumers who are going through low buying sentiments because of uncertain and precarious outlook for ecomy and ir source of income. So definitely it will be helpful to boost volumes for passenger vehicle industry," he said. Currently, automobiles attract GST of 28 per cent with ditional cess ranging from 1 per cent to 22 per cent.

When asked about electric vehicle segment, Chandra said government has done its part and it was w up to ecosystem players to participate in process.

As far as government is concerned, trust y have been bringing to electrification is something which very few governments across world have done. Significant capital has been diverted towards FAME scheme and ors including charging infrastructure and R&D, Chandra said.

It is w up to manufacturers w to scale up ir operations, he ded.

"Government has done a lot and only thing that government can consider is giving FAME scheme benefits to personal car segment as well. Incentives currently are being directed towards shared mobility and it is t gaining traction as during pandemic fleet segment has got impacted a lot, Chandra said.

Personal car segment is 90 per cent of industry and even a lower penetration of this 90 per cent segment would bring more visibility to electric segment in country, he ded.

Demand can be triggered through personal segment. Keeping that in mind if FAME incentives are also provided to personal segment electric cars which meet criteria of price, localisation, range it will just accelerate process of electrification in country, Chandra ted.

Tata Motors currently sells Nexon EV and two trims of Tigor with different range outputs. During July-September quarter, company has sold over 900 electric vehicle units. Since January, over 1,500 units of Nexon EV have been sold.

We believe in future of electric mobility. We alrey have two versions of Tigor, we have Nexon EV, and we have anunced Altroz EV, something which we are working on. re will be ditional versions and products which will come in coming years, Chandra said.