Automobile Companies Cut Car Prices after GST
With India entering the GST regime, a few automobile giants have slashed prices and several more are expected to join in to minimize the transitional effect of the new taxation framework on their sales. This has provided a great opportunity to buyers, who missed out on pre-GST offers.
Maruti Suzuki, the biggest player in the Indian automobile market, has reduced the prices of most of its models by up to 3%. The company has reduced the price of Alto by up to Rs 5,400, WagonR by up to Rs 8,300, Swift by up to Rs 10,700 and the all-new Dzire by up to Rs 15,100. Baleno has got a rate cut ranging from Rs 6,600 to a maximum of Rs 13,100. The compact SUV Vitara Brezza will cost lesser by up to Rs 14,700 whereas the rate cut in case of S-cross ranges between Rs 17,700 to Rs 21,300. Ertiga (petrol) would cost less by up to Rs 21,800 whereas the petrol variant of Ciaz has got a rate cut of up to Rs 23,400.
Toyota has also slashed down the rates on most of its models. Platinum Etios will now cost lesser by up to Rs 24,500 whereas Etios Liva will become cheaper by up to Rs 10,500. Innova Crysta would cost lesser by up to Rs 98,500 and buyers would have to pay Rs 2.17 lakhs less for Fortuner. These massive rate cuts are because of the reduction in tax by 12% on SUVs above 4 metres.
Honda has reduced the prices of its cars by up to Rs 1.31 lakhs. Brio’s cost has been slashed by up to Rs 12,279 and Amaze’s price has been reduced by up to Rs 14,825. Premium hatchback Jazz will now cost up to Rs 10,031 less and the recently launched WR-V is priced at Rs 10,064 lesser. The prices of Honda City variants have been slashed in the range of Rs 16,510 and Rs 28,005. Honda BR-V’s price has been slashed by up to Rs 30,387 and CR-V would now cost up to Rs 1,31,663 less.
Ford India has also reduced the price of its cars by up to 4.5%. The company’s premium SUV, Endeavour would cost up to Rs 3 lakhs lesser. Ford has reduced the price of Figo by up to Rs 3,000 and that of Ecosport by up to Rs 8,000.
Due to the GST, luxury car brands like Audi, BMW and Jaguar Land Rover will also cost less now. Earlier, such cars attracted a tax of 51.8% whereas these cars will now be taxed at only 43%. BMW has reduced prices of its models in a range of Rs 70,000 and Rs 1.8 lakhs. Jaguar has reduced the prices of its India-made cars by 7%.
However, Hybrid cars like Toyota Prius and Honda Accord have taken a hit post GST. Taxes on such cars have increased from approximately 30.3% to 43%.
The GST regime has four tax slabs – 5%, 12%, 18% and 28%. While all cars have been placed in the highest tax bracket of 28%, further cess on the car will depend on length of car and engine capacity.