GST rates on automobiles as much as 4 metres in length and with as much as 1,200 cc engine were slashed to 18 % from 28 %. Cess was likewise gotten rid of, making lorries more affordable.|Picture Credit: REUTERS
With increasing product rates and volatility in the currency exchange rate, guest lorry(PV )costs are set to increase in 2026. Car manufacturers are assessing rate boosts, which are most likely to be executed early next year.
“We will not be increasing the lorry costs in Q3 (October-December) since of the Goods and Services Tax (GST) rate decrease execution. We will be taking rate boosts in Q4 (January-March),” stated Shailesh Chandra, Managing Director & & CEO, Tata Motors Passenger Vehicles Ltd, to businessline
GST rates on cars and trucks approximately 4 metres in length and with as much as 1,200 cc engine were slashed to 18 percent from 28 percent. Cess was likewise gotten rid of, making automobiles more affordable. With the rate decrease, initial devices producers (OEMs) reported record sales throughout car sectors and experienced a boost in need for little cars and trucks.
Nomura, in a report, kept in mind that product expenses, led by rare-earth elements, have actually seen a consecutive boost of 100 bps quarter-on-quarter (q-o-q) in two-wheelers and guest automobiles (PV). “Hence, OEMs may require to think about rate walkings in January to balance out these pressures and secure margins,” mentioned the report.
“With product rates increasing, depending upon inflation, lorry rates will relocate sync, as is the standard. Anything that enters into the lorry production procedure would be used up either by the OEM or completion customer. This pattern has actually been going on for several years, and I think every OEM has actually prepared their service appropriately,” Nitin Kohli, Brand Director, Volkswagen India, informed businessline
Experts mentioned that the pick-up in PV need is since of the joyful season and GST cuts.
Currency exchange rate
High-end cars and truck makers are likewise anticipated to increase their lorry costs in India in the wake of Rupee devaluation.
“We have actually not maintained anything from this GST decrease, with the hope that the need will increase and restore itself. … since the currency exchange rate is high, we will need to take some prices action, beginning early next year itself. Which would once again trigger emotional concerns, and purchasing behaviour might likewise alter. Those dangers stay,” stated Santosh Iyer, Managing Director & & CEO, Mercedes-Benz India.
Released on November 14, 2025
