Hyundai Motor India Welcomes Landmark GST Reforms as a Major Boost for the Auto Sector
In a significant development for the Indian economy, Hyundai Motor India Limited (HMIL) has welcomed the landmark GST reforms announced by the Government of India. This “revolutionary step” is expected to enhance buoyancy and strengthen consumer confidence. According to Mr. Unsoo Kim, Managing Director of HMIL, the reforms will provide a strong impetus to the Indian economy by reducing the tax burden on essential goods, which lays the foundation for inclusive growth and a robust, consumption-led economy.
The GST overhaul is set to directly benefit the automotive sector. The changes align with the government’s commitment to the Viksit Bharat and Make in India initiatives, which aim to encourage domestic manufacturing and boost demand in both urban and rural markets. Viksit Bharat 2047 is a government vision to transform India into a developed nation by its 100th anniversary of independence in 2047. The Make in India initiative, launched in 2014, seeks to facilitate investment and promote India as a global manufacturing hub. Hyundai Motor India has stated that it is committed to supporting this vision and contributing to the nation’s journey towards becoming a global manufacturing powerhouse.
A key benefit for Hyundai is that 60% of its internal combustion engine (ICE) portfolio will now fall under the 18% GST slab rate, with the remaining 40% at a 40% slab rate. This tax reduction on essential and entry-level goods is expected to make vehicles more affordable and stimulate consumer demand, especially for first-time buyers and in the mid-size car segment. The new GST rates are effective from September 22, 2025.
Frequently Asked Questions
1. What is the statement from Hyundai Motor India about the GST reforms? Hyundai Motor India Limited (HMIL) welcomes the GST reforms, calling them a “revolutionary step” that will provide a strong impetus to the Indian economy and strengthen consumer confidence.
2. How will the GST overhaul benefit the Indian automotive sector? The GST overhaul is expected to directly benefit the automotive sector by aligning with government initiatives like Viksit Bharat and Make in India, which encourage domestic manufacturing and boost demand.
3. What is the impact of the GST reforms on Hyundai’s vehicle portfolio? As a result of the reforms, 60% of Hyundai Motor India’s internal combustion engine (ICE) portfolio will now be taxed at an 18% GST rate, with the remaining 40% taxed at a 40% rate. This is expected to make entry-level and mid-size cars more affordable.
4. Who is the Managing Director of Hyundai Motor India Limited? Mr. Unsoo Kim is the Managing Director of Hyundai Motor India Limited.
5. What is the ‘Viksit Bharat’ initiative? Viksit Bharat 2047 is the Government of India’s vision to transform the country into a developed and self-reliant nation by 2047, which marks the 100th year of its independence. The vision is based on pillars of economic prosperity, social advancement, and sustainable development.
6. What is the ‘Make in India’ initiative? The ‘Make in India’ initiative was launched in 2014 to foster investment, encourage innovation, and establish India as a global manufacturing and design hub. It seeks to create a business-friendly environment and promote domestic production.
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