GST-driven stock rationalisation sees June PV numbers dive 11%

With predictions of reduced pricing of passenger vehicles (PV) following implementation of GST from July 1, customers in India experienced considerable confusion as regards their purchase decisions in June, in lieu of benefiting from the tax cut on most vehicles effected by the country’s biggest-ever tax reform.

For many vehicle manufacturers, all of June went into stock rationalisation, especially at the dealer end, with most dealers focusing on liquidating their existing inventory so as to not carry it forward into July. The key reasons for this was the upcoming drop in prices and a very grim clause from the government ...