The Ministry of Heavy Industries (MHI) has asked automobile companies to put up posters comparing old and new vehicle prices after the recent goods and services tax (GST) cuts. The directive covers carmakers as well as two-wheeler manufacturers, with instructions routed through the Society of Indian Automobile Manufacturers (Siam).
According to officials and industry executives, the posters will also carry the photograph of Prime Minister Narendra Modi. Automakers are already working on designs and sending them to the ministry for clearance before they are printed and distributed.
It is still unclear whether the cost of printing and distribution will be absorbed by companies, dealers, or shared between the two. One executive pointed out that language could complicate matters: if posters are made in local languages, each version might need separate approval from the ministry.
Industry sources estimate that the automobile sector could end up spending at least ₹20-30 crore on this exercise. The posters are expected to reach dealerships by the end of this week.
Luxury carmakers have been kept out of the poster mandate. Mass-market brands such as Maruti Suzuki, Hyundai, Mahindra and Mahindra, Tata Motors, Toyota and Kia have already announced they will pass on the full GST benefit to customers, which has lowered prices across models.
The GST Council had, on September 3, cut tax on small cars — under 4 metres in length and with engine capacities below 1200 cc for petrol and 1500 cc for diesel — to 18% from the earlier 29-31% (including cess). Larger cars — over 4 metres, above 1500 cc engine capacity, and with ground clearance above 170 mm — now attract 40% tax, down from 50%. The Centre has also withdrawn the compensation cess.
