S.Korea's Hyundai Motor says India tax reforms a 'setback'
 
, Posted on 13-Sep-2017


S.Korea's Hyundai Motor says India tax reforms a 'setback'

New Delhi : South Korean auto giant Hyundai Motor says that fresh changes to India's new national tax had shaken industry confidence in the country with firms already struggling to boost sales.

The Indian government launched a new national goods and services tax in July to replace more than a dozen separate levies and transform the $2 trillion economy into a single market for the first time.

The goods and services tax (GST) sets out four different rates of between five and 28 per cent for businesses instead of the one originally envisioned.

However, the government has made several changes to the tax regime regarding some products including sports vehicles, and luxury and hybrid cars, which auto makers complain have forced them to alter their pricing strategies. 

"The recent rolling back to multiple rates with pre-GST classification has come as a setback to the industry, shaking the confidence of auto manufacturers," Hyundai said in a statement.

"We expect the coming festive season (Diwali) will witness low customer sentiment on new purchase decision.

"Further, in the absence of consistent and long-term policy the investment for new products and new technology will be adversely impacted," it added.

India's economic growth slumped to 5.7 percent in the first quarter of the financial year owing to a controversial ban on high-denomination notes in November as well as the GST roll-out.

Auto makers have also complained about a recent government push to switch cars to electric by 2030. 

This would require them to make massive fresh investment and manufacturing plans including setting up new plants and supply lines. 

AFP


Related News

Hot new talent lights up Milan Fashion Week
Sep 20

Hot new talent lights up Milan Fashion Week

Milan : Fashion week roared into Milan on Wednesday with a line-up of hotly anticipated shows from fresh talent as well as luxury titans ranging from Moschino to Armani, who are battling for their share of a rebounding market. Gucci is the first big name in line during the six days of catwalk strutting, coming in...

Read More
Suffering from Dry Eye? Smart devices may be the reason!
Sep 20

Suffering from Dry Eye? Smart devices may be the reason!

Manama : Dr. Nada Al Yousuf, Ophthalmology and LASIK Consultant at the King Abdullah bin Abdulaziz Medical City University Medical Centre, confirmed that dry eye has become a widespread health issue, while warning against the serious complications which may affect vision due to changes in the quality of life and...

Read More
Ford to tie up with India's Mahindra, eyes access to huge market
Sep 19

Ford to tie up with India's Mahindra, eyes access to huge market

New Delhi : Ford Motor and India's Mahindra Group have announced they will work together in a fresh partnership as the US giant looks to boost its presence in one of the world's fastest growing auto markets. The two, who parted ways from a tie-up in 2005, will co-operate for three years on a number of areas including...

Read More
'Car nation' Germany distrustful of driverless vehicles
Sep 19

'Car nation' Germany distrustful of driverless vehicles

Frankfurt am Main : German carmakers are showing off their self-driving cars at the IAA international auto show in Frankfurt, but most people in the car-mad country have yet to be convinced by the technology. Curious visitors to the biennial trade fair, which lasts until September 24, can entrust their lives to...

Read More
Rolling Stone, iconic music magazine, looks for buyer
Sep 18

Rolling Stone, iconic music magazine, looks for buyer

New York : Rolling Stone, the iconic 50-year-old magazine of music and counterculture, is putting itself up for sale amid an increasingly uncertain outlook, its founder said. Jann Wenner -- who started Rolling Stone in 1967 as a hippie student in Berkeley, California...

Read More
Moss wins actress Emmy for 'The Handmaid's Tale'
Sep 18

Moss wins actress Emmy for 'The Handmaid's Tale'

Los Angeles : Elisabeth Moss on Sunday won the Emmy for best leading actress in a drama series for her central role in the dystopian "The Handmaid's Tale." The 35-year-old won her first Emmy for playing Offred in "The Handmaid's Tale," the dark story of a misogynistic dictatorship that takes shape...

Read More
'The Handmaid's Tale' wins best drama series Emmy
Sep 18

'The Handmaid's Tale' wins best drama series Emmy

Los Angeles : "The Handmaid's Tale," the dark story of a misogynistic dictatorship that takes shape in New England, was crowned best drama series at the Emmy awards in Los Angeles on Sunday. The dystopian drama based on the 1985 novel by Margaret Atwood triumphed at the 69th Primetime Emmys, picking up a...

Read More
 Sterling K. Brown wins best actor Emmy for 'This is Us'
Sep 18

Sterling K. Brown wins best actor Emmy for 'This is Us'

Los Angeles : Sterling K. Brown won the Emmy for best actor in a drama for his performance in NBC's breakout family drama "This Is Us," which tells of the relationship between triplets and their parents over a three-decade period.  It was the second Emmy in as many years for Brown, who won a...

Read More
White wins the night on Emmys red carpet
Sep 18

White wins the night on Emmys red carpet

Los Angeles : From teen stars Millie Bobby Brown to Kiernan Shipka, comedian Kate McKinnon or Indian mega-star Priyanka Chopra, it was a dazzle of white on the Emmys red carpet on Sunday night. New York's Fashion Week wrapped up days ago in a whirl of color, but for television's big night in Los Angeles, monochrome...

Read More
Hamilton downshifts to 'amazing' vegan diet
Sep 17

Hamilton downshifts to 'amazing' vegan diet

Singapore : Formula One's Lewis Hamilton said a TV documentary had inspired him to go vegan to improve his health and avoid harming the planet. The Mercedes driver, who is seeking his fourth world title this year, said he had gradually moved to veganism over the past two years. "It is something I have been going...

Read More