Technology

Will Nirmala Sitharaman's New Decision Drive Up the Cost of Buying Old Cars? What Changes Can We Expect | Auto Live

The recent decision by Finance Minister Nirmala Sitharaman to increase the GST on used cars from 12% to 18% has sparked concerns in the used car market. Industry experts suggest that this tax hike could lead to a slowdown in the market, especially affecting business owners who primarily deal in second-hand vehicles. India, being the third-largest vehicle manufacturer, has a robust used car market with major players like Maruti Suzuki True Value, Mahindra First Choice, Cars24, and Spinny. The luxury used car market is also growing, with annual sales increasing by 35-40%. With 42% of used car buyers using informal channels to save on taxes, this shift could further grow after the new GST decision. The impact of this move is expected to affect both consumers and business owners.

The recent decision by Finance Minister Nirmala Sitharaman to increase the GST on used cars from 12% to 18% has sparked concerns in the used car market. Industry experts suggest that this tax hike could lead to a slowdown in the market, especially affecting business owners who primarily deal in second-hand vehicles. India, being the third-largest vehicle manufacturer, has a robust used car market with major players like Maruti Suzuki True Value, Mahindra First Choice, Cars24, and Spinny.

The luxury used car market is also growing, with annual sales increasing by 35-40%. With 42% of used car buyers using informal channels to save on taxes, this shift could further grow after the new GST decision. The impact of this move is expected to affect both consumers and business owners.

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