GST: Maruti cuts prices, Toyota Fortuner cheaper by Rs 2.17 lakh.
It is a good time to be in the market for a car. With the introduction of Goods and Service Tax, several car makers have passed on benefits to customers and have announced price cuts on several of their products.Maruti Suzuki – country’s largest car maker – was one of the first off the block and cut prices by up to three per cent on most of their products. The Alto is now cheaper by up to Rs 5,400, WagonR by Rs 8,300 and that of Swift by up to Rs 10,700. The price of a Baleno has also been reduced in the range of Rs 6,600 and Rs 13,100.
The all-new Dzire is cheaper by up to Rs 15,100. The company has reduced price of compact SUV Vitara Brezza ranging between Rs 10,400 and Rs 14,700, while that of S-cross has been cut in the range of Rs 17,700 and Rs 21,300.The petrol variants of Ertiga and Ciaz have received price cuts of up to Rs 21,800 and Rs 23,400, respectively. The hybrid diesel variants of both these cars though will now cost more due to withdrawal of tax concessions on mild hybrid vehicles under the GST.
“The ex-showroom prices of Maruti Suzuki models have come down by up to 3 per cent. The rate of reduction varies across locations depending on VAT rates applicable prior to GST,” MSI said in a statement.
Toyota is not too far behind in offering price cuts. The Innova Crysta gets a price cut of up to Rs 98,500 while the Fortuner is now cheaper by up to Rs 2.17 lakh thanks to SUVs above 4 meters enjoying a 12 per cent reduction in taxes. Platinum Etios is now cheaper by up to Rs 24,500 and Etios Liva up to Rs 10,500.
Much like other hybrids though, the Toyota Camry and Toyota Prius have become costly by Rs 3.5 lakh in Bengaluru and up to Rs 5.24 lakhs in Delhi as per applicable tax under GST. “We are happy to pass on the benefits of GST rates on vehicles to our customers,” said N. Raja, Director and Senior Vice President, Marketing and Sales, Toyota Kirloskar Motor. “With the GST rates our best quality products will become more affordable for buyers.”
Luxury carmakers like Audi, BMW and Tata Motors-owned Jaguar too have announced price cuts on some or all of their cars. “The new realigned prices offer great opportunity to expand the market and widen our customer base,” said Rahil Ansari, Head, Audi India. The petrol variants of cars offered by the company, for example, now fall under 43 per cent tax bracket – down from a collective 51.8 per cent. As a result, the A3, A4, A6, Q3, Q5 and Q7 would burn a smaller hole in the pocket.German luxury car maker BMW has also cut prices of its models, ranging from Rs 70,000 on base end version of X1 to Rs 1.8 lakh on the top end of its sedan 7 series. However, the company’s hybrid model i8 will witness a hike of Rs 4.8 lakh to Rs 2.28 crore.
Jaguar has cut prices of all its India-made cars by 7 per cent on an average to pass GST benefit to customers. Some other major car manufacturers are also expected to shortly announce new price list of vehicles in their product portfolio.
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