Profitability of Indian automobile industry before and after implementation of GST policy

Abstract

This research paper explains the scenario of Indian automobile industry before and after implementation of GST policy, which was implemented in the year July 2017 and compares the profitability of major players of this industry pre and post GST policy implementation. I have done panel data analysis to evaluate the big data of the different companies. Here I have considered Honda cars, Hyundai motors, Mahindra & Mahindra, Maruti Suzuki, Tata motors and Toyota Kirloskar for 10 years i.e. from 2014-2023. Tax structure for automobile manufacturing fluctuates depending upon state to state, to eliminate cascading tax effect government of India launched Goods and service tax policy to minimize the taxes, which was a burden for both buyers and the sellers. Even helps in knowing which all factors have significant effect on the profitability of the company and whether it is a positive or a negative effect. I have considered R software to analyse the data and run a regression analysis. GST policy provides long-term benefit for automobile industry, which has an impact on profitability. Policymakers and industry stakeholders should properly analyse the policies because manufacturing sector are one of the most contributors towards the economic growth and GDP of the country. Based on my analysis at last I will conclude whether there is significant impact on profitability of Indian automobile industries or not.