Over the past few years, the automobile sector has been stuck in a quagmire, with floundering sales as a result of slowing economy.
The onset of the Covid-19 pandemic could result in vehicle sales plunging further and the recovery path will be slow.
Even as automakers try to tide over the crisis with virtual showrooms and contactless deliveries, there seems to be a growing concern with Economic factors impacting the automotive Industry as a whole across the World.
In the wake of the slowdown, the auto industry has been requesting the government for support through a viable tax structure in India, taxes for vehicles go as high as 28 percent. Then there are additional levies, mostly charged as a compensation cess that range between one percent and 22 percent, based on a car’s fuel type, length or engine size. A buyer will also have to pay road tax depending on the state of domicile, which could go up to almost 20 percent.
