India’s automotive industry has welcomed the government’s move to rationalise and simplify the GST structure. Mr. Piyush Arora, CEO & MD of Škoda Auto Volkswagen India Pvt Ltd, shared his perspective on how the reforms could boost affordability, demand, and long-term growth across segments.
What Mr. Piyush Arora Said
Mr. Piyush Arora, CEO & MD, Škoda Auto Volkswagen India Pvt Ltd, on the government’s move towards GST rationalization and simplification:
"Rationalisation and simplification of GST is a welcome step and one that the automotive industry has been seeking for a long time. The shift to an 18% slab for small cars will enhance affordability and support stronger demand in the high-volume segment. At the same time, the 40% slab for premium and luxury vehicles provides clarity and simplifies taxation, helping customers make informed choices with greater confidence."
"With a diverse portfolio spanning Škoda and Volkswagen to Audi, Porsche, Lamborghini and Bentley, we recognize the significance of reforms that balance accessibility with aspiration."
"Such reforms have the potential to strengthen market sentiment, encourage demand across segments, and create a more conducive environment for long-term growth. This approach signals the government’s intent to make the tax ecosystem more equitable and future-ready, which will benefit the entire value chain and further boost India’s position as a key automotive hub."