TATA Automobile Industry Product range – Commercial vehicles, Passenger vehicles and

motors Passenger transport

GDP/GVA GDP growth of India is 7.2% Total sales of TATA motors for FY 2018 -2019 and FY 2017-18
growth in FY 2018-19. Due to
rate and which the car sales in urban
Firm area grew only by 2.7%.
The sale of passenger cars
and utility vehicles has seen
a slowdown.
Industry-wide sales of
passenger vehicles in India
increased by 2.8% in FY
2018-19, compared to a
7.3% growth in FY 2017-
18

Interest Higher interest rates raise the

Rates cost of borrowing for
households, inducing a
decline in demand for
automobiles. Also higher
interest rates raise the cost of
holding inventories.
Corporate Automotive industry accounts
tax rates for half of the manufacturing
GDP of India. Recently
Government have reduced the
corporate tax this will highly
incentivise OEMs
Indirect tax The commercial vehicle
rates/ GST segment has been largely Impact of GST on sales of Tata Motors
affected by GST. Earlier the
segment was paying 30-32% 45000
tax. But after the 40000
implementation of GST the tax
35000
is now reduced to 28% so the
impact in valuation is relatively 30000
negligible. Commercial Commercial
Vehicles and passenger
There is no change is the price vechicles
of tractors, the tax rate
remains at rate of 18%. Jun-17 Jun-16 Column1
The maximum effect will be on
passenger vehicle segment, the
total GST rate on this segment the total sale of passenger and commercial vehicles, including
is 43%. exports, in June 2017 was capped at 40,358 vehicles, which is 9 per
In non- commercial vehicle cent lower than the corresponding figures in June 2016.
segment there is a overall 28%
GST on small- budget cars.