Car makers likely to see pent-up demand over next two months on tax rationalisation: Stellantis official

Mumbai, Sep 5 (PTI) The car makers are expected to see a pent-up demand over the next two months, and the industry may perform better than projected earlier this fiscal due to GST rate rationalisation, which will make small cars cheaper, Stellantis India business head and director for automotive brands Kumar Priyesh said on Friday.

He also said that building local R&D, manufacturing, supply chain, and localised products has helped the group's Citroen brand keep its vehicle prices accessible for customers.

Earlier, Citroen India announced the debut of its Basalt X Range, with all-new interiors, along with India's first intelligent in-car companion CARA, at a starting price of Rs 7.95 lakh.

"So, I would say, for the next two months, we are going to see a pent-up demand, but I would see that it is going to continue.

"The November-December period and the next quarter are going to be better than the previous one with all these things (festive season and GST 2.0), which are happening. So I would say industry growth will be better than what we forecasted without this," Kumar told PTI.

So, the festive season for the passenger car segment, which has started with Onam, Ganesh Chaturthi, then Navratra and Diwali, is going to peak probably at the end of October, he added.

"This is the period when people really take their next bet or next investment to go to the next level. And this is absolutely the right time for passenger cars to get into customers' houses and get a new identity.

"I would say one is the festive season and the second is the government actions, which are on GST," he said.

" The decision on GST is very good for the consumers. It will improve the demand because we were looking at kind of not so much growth in the last couple of months, which will refuel the growth. It is also becoming more and more accessible and affordable for people to own a passenger car." He said that the debut of the Basalt X Range marks a bold leap forward in the company's Citroen 2.0.

"With Basalt X, we're bringing premium interiors and features that transform the everyday drive into something special. Backed by our rapidly growing network, these launches signal a powerful new direction for Citroen in India," Kumar added. PTI IAS BAL BAL