Stellantis India CEO Shailesh Hazela projects a 5% growth in India’s passenger car industry this fiscal, crediting GST 2.0 reforms for unlocking demand, especially for small cars. The company also expects a four-fold jump in component exports to ₹10,000 crore, positioning India as a stronger hub in Stellantis’ global operations.
ndia’s passenger car industry is set for a revival, with GST 2.0 reforms driving fresh momentum. According to Stellantis India CEO Shailesh Hazela, the sector is expected to log over 5% volume growth, reversing sluggish trends seen before the tax overhaul. The reforms have particularly boosted affordability and demand for small cars, widening the consumer base.
Notable Updates
• Growth outlook: Passenger car volumes projected to rise by more than 5% this fiscal.
• Policy impact: GST 2.0 reforms have reduced costs and improved accessibility, especially for entry-level vehicles.
• Export expansion: Stellantis aims to quadruple component exports from ₹4,000 crore to ₹10,000 crore next year.
• Manufacturing strength: Facilities in Hosur and Bengaluru produce up to 3.74 lakh gearboxes and 3 lakh engines annually, serving as key pillars of Stellantis’ global supply chain.
• Market revival: Prior to GST 2.0, car sales showed minimal growth; reforms have reignited demand.
Major Takeaways
• Tax reforms are a catalyst for industry growth, especially in the small car segment.
• Exports will play a crucial role in Stellantis’ India strategy, strengthening its global footprint.
• Manufacturing capacity in India is central to Stellantis’ long-term plans.
Sources: The Hindu Business Line, The Economic Times