Budget 2023: Lower taxes on cars will augur well for demand: Brar of Kia India

Lowering taxes on passenger vehicles in the now imminent Union Budget will ensure that the demand remains robust, says Hardeep Singh Brar, vice president and head of marketing and sales, Kia India.

Although the passenger vehicle industry is expected to close the fiscal year at an all-time high, the industry is perturbed by a gamut of different factors—from the stringent regulatory (BS-VI stage 2) and safety norms (the six airbags mandate), to rising interest rates and input costs—all of which has led to price hikes. “The prices of the cars have increased tremendously since the pre-pandemic period,” he says.

The headwinds have started to take its toll on demand. “The demand has softened over the last couple of months. The overall inflation, even though it has slowed down recently, continues to remain high,” he explains.

Brar believes that one area that has been identified that could act as a fillip is a relief in taxes. “The only thing we can look at it is some relief in the tax levied on cars, so that the industry continues to grow at the levels it has for the last couple of years.”