Mahindra & Mahindra Ltd. expects the re-elected government to rationalise Goods and Services Tax levied on automobile purchase to help the distressed sector.
“The implementation of the schemes announced in the Bharatiya Janata Party's election manifesto, along with rationalisation of the GST rates would benefit the auto industry and the carmaker,” its group Chief Financial Officer VS Parthasarathy told BloombergQuint in an interview.
The company's profit for the quarter ended March fell, hurt by lower margin and overall decline in sales volume.
On the transition from Bharat Stage-IV to the new BS-VI norms, Parthasarathy said the supply chain would be a bigger challenge. The company, according to him, is well placed to bring in cleaner vehicles as per the BS-VI fuel norms. “It's a challenge but not that you can't surpass it.”
M&M would continue to make diesel vehicles even as BS-VI standards roll out, he said, adding that it's a misconception that diesel and BS-VI do not go well together.
Watch the full interview here:
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
