 "GST impact: June may see muted growth in car sales, decline unlikely")
A reduction in prices post the goods and services tax (GST) has not resulted in an immediate pick-up in retail demand for cars. Auto firms are seeing a temporary slowdown in demand this month despite wholesale dispatches to dealers expanding.
Two factors are responsible for the trend: First, most companies had pushed volumes aggressively, backed by hefty discounts, to clear pre-GST stocks in June. That was to avoid losses on input tax credit from July 1. Second, companies have witnessed a slowing demand from small traders and businessmen as this segment is still struggling with the impact the GST has had
