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Automotive Industry To Benefit From Corporate Tax Cut, Says ICRA

India's automotive industry is likely to be one of the key beneficiaries of the recent corporate tax cut, credit ratings agency ICRA said on Monday

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India, Tax cut, Automotive Industry
India's automotive industry is likely to be one of the key beneficiaries of the recent corporate tax cut. Wikimedia Commons

India’s automotive industry is likely to be one of the key beneficiaries of the recent corporate tax cut, credit ratings agency ICRA said on Monday.

“Under the current weak demand conditions, OEMs (original equipment manufacturers) are expected to pass on some of the benefits of tax revision to the end consumers,” ICRA Vice President and Sector Head Pavethra Ponniah was quoted in a statement.

“This implies that the price correction in coming months will to an extent address the demand side issues. Moreover, clarity from the government, that there is no further GST or cess revision, will help consumers who were waiting for improved clarity prior to their car purchase decision,” she added.

According to ICRA, the current reduction of corporate tax rates in India to globally competitive levels will incentivise OEMs and their vendors to increase localisation, which augurs well for the industry.

In 2019-2020, India has imported auto components worth $17.6 billion.

India, Tax cut, Automotive Industry
the current reduction of corporate tax rates in India to globally competitive levels will incentivise OEMs and their vendors to increase localisation. Pixabay

ICRA also said that given the increasing US-China trade tensions, revision in corporate tax will attract FDI in Indian manufacturing sector, as the revised tax structure is now in line with other emerging markets.

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“In the current fiscal, the Indian automotive industry, especially the passenger vehicle segment, has witnessed one of the worst slides since the last two decades because of multiple factors,” the ratings agency said in a statement.

“Tighter financing environment for consumers and the liquidity crunch faced by dealerships coupled with weak farm income and overall slowdown in economic activity has impacted consumer sentiments and purchasing behaviour,” the statement added. (IANS)

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Customers Redeem Coupons 40% More During Diwali, Says GrabOn

Coupons & Deals market leaders GrabOn observed a significant growth in the number of coupons and offers used during the Diwali period since 201

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GrabOn
As Diwali comes with a plethora of sale events from various e-commerce portals, big and small. GrabOn Offers it's Customers Easy and Happy Shopping. Pixabay

Diwali comes with a plethora of sale events from various e-commerce portals, big and small. Needless to say, the average Indian shopper spends big bucks on gifting during this festive season. Hyderabad based online couponing company, GrabOn, has helped online shoppers save on their Diwali expenses by providing the top offers, deals and discounts on products across segments like food, recharge, travel, electronics and more.

Based on their internal data points and insights, they have come up with an infographic illustrating the consumer behavior in terms of coupon redemption and how it has changed over the course of the last 4 years during Diwali i.e. from 2016 to 2019.

GrabOn with a monthly subscriber base of more than 6.5 million users and 3000+ merchant partners onboard, boasts of helping India save over 300 crores in the last financial year alone. Their infographic focuses on the key segments like Travel, Recharge, Food, Electronics, Fashion while covering more. The coupon usage trend also highlights cities with most coupon redemptions. 

This infographic drives further delves into the specifics considering the biggest festival season in India. With a detailed analysis of the consumer demographics, age group, peak usage time, among other crucial insights, this Diwali based infographic puts a limelight on India’s coupon culture.

‘The e-commerce industry and the coupons space share a healthy symbiotic relationship which leads to mutual growth and success. The festive season, Diwali in particular, brings in high transactions. The Bachat Wali Diwali campaign we run during this time is also one of the contributing factors to this increase’, says Ashok Reddy, Founder & CEO, GrabOn.

 

GrabOn
Coupons & Deals market leaders GrabOn observed a significant growth in the number of coupons and offers used during the Diwali period since 2016. Pixabay

Food Tops The List

The Food vertical seems to have enjoyed the most preference during Diwali season, with the maximum number of coupons being redeemed for the category. The percentage usage increased from 21% to 58%. This change can be attributed to cheaper Exclusive offers. Delivery aggregators like UberEats, Zomato, Swiggy, and others are taking the industry by storm.

 Recharge Goes up!

The Recharge segment has seen a steady rise in coupon redemption rate, going up by 9% during Diwali 2018 when compared to Diwali 2017. The data suggests that more people prefer to look for super-saver tariff plans during the festive season.

 Fashion or Electronics Are Not the Most Preferred

While most guesses would go to Fashion or Electronics for having the majority of coupon redemptions, surprisingly both of the categories combined account for 16% of the total coupon usage during Diwali 2018.

 Indian Startups Doing Well

The infographic found Paytm, Ola, Zomato, BookMyShow, and Myntra leading the charge with other category merchants following suit.

GrabOn
GrabOn, has helped online shoppers save on their Diwali expenses by providing the top offers, deals and discounts on products across segments like food, recharge, travel, electronics and more. Pixabay

 About GrabOn

GrabOn is an Indian coupons and deals marketplace, headquartered in Hyderabad, India. It was founded in September 2013 by Ashok Reddy. A pioneer in the affiliate e-commerce coupon industry, GrabOn operates in over 450+ Indian cities. GrabOn provides authentic and latest deals in the industry through the strategic B2B partnerships and a wide network of merchants. Established with a motto of ‘Saving On Everything’, GrabOn offers the latest deals across a wide range of verticals like travel, recharge, fashion, electronics, food, beauty products, clothing, furniture, health, jewelry, movie tickets, automobiles, accessories, and home needs among others.

ALSO READ: Delhi Schools Encourage Students to Celebrate Eco-Friendly Diwali

Media Contact:

Thehasin Nazia: thehasin@grabon.in