Toyota sales decline by a huge margin as the switch to GST tax regime is said to have unsettled buyers’ sentiments
Toyota Kirloskar Motor have endured a massive sales slump of 85 percent in the month of June 2017. As just 1,973 examples were sent off the dealerships, the Japanese manufacturer has declared in a statement that the switch to new GST tax regime from today onwards has made them protect stocks leading to the contrasting decline in numbers.
With several popular products in the domestic market, Toyota did sell a total of 13,502 units in the same month last year and comparatively that makes for a huge difference. The dubious situation encapsulating the weeks leading up to the GST implementation has made customers to not make a resolute buying decision.
While some manufacturers capitalised last month to offer more discounts in a bid to prevent slowing down of sales, others seem to have taken a hit. According to N. Raja, Toyota’s Director and Senior Vice President, Sales and Marketing, the potential buyers have postponed their purchasing plan due to the uncertainty prevailed.
It was cited as the reason for Toyota taking the decision to minimise the volumes sold to dealers in June 2017. He also stated that the strategic move had been followed to alleviate the burden on the authorised Toyota dealers spread across the country as it would give them a chance to clear the prevailing stocks.
Moreover, he believes the decision would lessen the impact of the differential tax the GST laws has brought into play. Despite the slowing down of sales last month, Toyota is positive over the benefits the GST tax structure would commend for the growth of the automotive industry and lead to a double digit figure. But, most importantly, the customers’ buying credentials of Toyota vehicles is expected to get back on track this month.