A senior executive from Stellantis India has stated that the passenger vehicle sector is anticipated to achieve more than 5 percent growth in volume, spurred by the recent GST 2.0 changes that have significantly increased demand for small cars.
Stellantis India, managing two brands—Jeep and Citroen—within the nation and possessing three manufacturing plants in India, including the Hosur powertrain and gearbox facility, announced it is targeting a more than four-fold increase in component exports to Rs 10,000 crore next year, up from Rs 4,000 crore.
The Hosur facility, together with the one in Bengaluru, produces up to 3.74 million gearboxes and 300,000 engines each year, serving as a crucial pillar for Stellantis's global operations.
Shailesh Hazela, Managing Director and CEO at Stellantis India, stated that before the GST 2.0 reforms, car sales saw minimal growth, adding, "However, with GST, the growth rate for the auto industry will exceed 5 per cent."
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He mentioned that the demand for automobiles increased during the last eight days of September following the implementation of GST 2.0, and again in October, adding, "It is ongoing (currently)."
I believe the most promising segment is among smaller vehicles, where individuals who are hesitant can transition from using two-wheelers to four-wheelers. In my view, that segment is increasingly gaining benefits, and it ought to persist, he stated. Hazela mentioned that Stellantis India also benefited from reduced GST rates, particularly for its Citroen brand of vehicles, where many cars are priced below Rs 13 lakh, along with the jeep model, which became 10 per cent more affordable
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