Higher taxes, other levies hurting luxury car sales; govt must address: Audi India head

High GST rates, import duties and registration taxes are limiting the growth of luxury car market in India and the government must consider reducing these in the upcoming Budget, according to German luxury car maker Audi.

The company, which saw 28.92 per cent decline in sales at 4,594 units in 2019 as against 6,463 units in 2018, said every major player in the luxury segment saw decline in sales last year and government support would help in overcoming the downturn.

"Luxury car sales are impacted by high GST rates, import duties and registration taxes, which is limiting the segment to a mere 1.2 per cent of the overall car market; when compared to other global markets," Audi India head Balbir Singh Dhillon said.

He further said, "Every major luxury car player has de-grown in volumes during 2019."
Hence, Dhillon said, "We would urge the government/GST council to reduce GST, import duties and rationalise the vehicle registration cost on luxury cars, across the country."
Dhillon further said, "Easy lending by the banks and NBFCs will help expand the market and boost the overall automotive industry."