GST Reduction Boosts Auto Demand

CarTrade Tech Limited (NSE: CARTRADE | BSE: 543333), India's leading digital marketplace for automobiles and used products, announced that the government's recent reduction of GST on passenger vehicles, two-wheelers, and used vehicles is expected to significantly enhance affordability, uplift consumer sentiment, and accelerate transaction volumes across both new and used categories. Early signs of this policy shift are already visible across the industry.

The company's consumer platforms, CarWale and BikeWale, have witnessed a surge of over 25% in consumer traffic, triggered by the GST reduction. The combination of this tax reform and the upcoming festive season is likely to further drive industry momentum.

Key growth drivers include:

1. Dealer and OEM participation, leading to higher new vehicle volumes.
2. Festive season demand, historically the peak period for automobile and retail sales.
3. GST-led affordability gains, boosting transaction volumes across both new and used products.

Banwari Lal Sharma, CEO - Consumer Group, said: "The GST reduction is a game-changer for India's automobile industry. By reducing ownership costs for consumers and increasing velocity for dealers, it has set off a new wave of demand. This policy move comes at the perfect time, just ahead of the festive season, and will act as a powerful catalyst for both new and used categories. We expect this to not only boost volumes but also deepen trust and participation across our ecosystem of consumers, dealers, and OEM partners".

Shares of CarTrade Tech Ltd was last trading in BSE at Rs. 2455.65 as compared to the previous close of Rs. 2732.90. The total number of shares traded during the day was 165328 in over 15695 trades.

The stock hit an intraday high of Rs. 2717.95 and intraday low of 2222.35. The net turnover during the day was Rs. 402602742.00.

Source : Equity Bulls

Keywords

CarTradeTech GSTReduction PassengerVehicles AutoDemand