NEW DELHI/MUMBAI : Top executives of India’s leading automobile firms urged the government to undertake a slew of measures, including a cut in the goods and services tax (GST) on vehicles and an incentive-based vehicle scrappage policy to aid demand recovery against the backdrop of the covid-19 pandemic. “Demand in India is constrained by affordability and the main reason is taxation from our socialist days.
Demand creation has been an issue and this has to be backed by the government. Affordability has been an issue for some time and cost of manufacturing will be higher," said R.C Bhargava, chairman, Maruti Suzuki India Ltd at Mint’s Pivot or Perish webinar.