Speaking about the current year, Kapur averred, "We foresee a similar growth in the current year as well due to the combination of domestic market factors and our export business. We are expecting a minimum growth of 15-20 percent in the current year. We have substantial export orders from the US, with business already booked for the current year. We are also working with different OEMs as well as Tier-I suppliers - mostly differential manufacturers - and we see good growth in that."

Imapat of GST
While the company was going through internal corporate transformation and was focusing on the current businesses, the other external aspect that was to impact the business was GST. Elaborating on its impact of this major tax reform on the industry, Kapur stated, "I believe GST is a beginning that will foster the creation of a stable and coordinated policy regime - something the automotive sector always needed. We should also remember that not only do we need to sustain and improve manufacturing competitiveness but also to internalise the strongest focus on addressing the challenges of environment and safety."

"The Automotive Mission Plan (AMP) 2016-26 envisions helping the industry touch $260-300 billion, and help in the creation of 65 million more jobs. The mission is to increase the exports of vehicles by five times and components by 7.5 times and help the industry contribute 12 percent to the Indian GDP. The GST rates on automobiles will truly empower the industry and its various component sectors by boosting demand. An overall reduced tax burden will strengthen the automotive market in India," he said.

"Nearly a third of all small cars sold worldwide are made in India, and it is time to give a fillip to the sale of cars in the premium segment. So keeping the costs of small cars almost the same, thanks to the minimal hike in duty, the GST announcements will reduce the effective duty on premium cars, benefitting buyers. By reducing the tax on luxury cars from the present rate of 52-55 percent to between 42-45 percent under GST (a GST rate of 28 percent and maximum luxury car cess of 15 percent), the Government will give the required fillip to the sale of premium cars, which declined in 2016," Kapur added.

While we look at its bright side, GST has adverse side too.
According to Kapur, "In the age of greater environmental  consciousness and personal activism, it is particularly disheartening that the Government has decided to tax hybrid cars at the highest GST bracket of 28 percent in addition to 15 percent cess. Hybrid vehicles not only conserve fuel, they also produce less CO2 emissions. In fact, environmentally-responsible civic municipalities are putting a possible move to hybrid public transport vehicles on top of their public works agendas. Such environmental-friendly vehicles must receive the Government support they deserve. I believe it's time for the Second Green Revolution in India. This one can have a similarly far-reaching impact and provide equally-critical benefits as did the first - the agricultural revolution. The Second Green Revolution is a crucial need in the sphere of environmental consciousness, thereby driving socially-responsible manufacturing."

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