Cars, SUVs and bikes get cheaper after GST kick.
Prices of popular cars and motorcycles & scooters come down from Saturday as the GST regime kicks in, even though hybrids and bigger bikes with engines above 350cc become dearer.The GST rates will bring in tax parity across the country and will lead to a regime of ‘one nation, one tax’, say auto makers. One of the biggest benefit will be flowing in for people living in Mumbai where the Octori will be subsumed in the new GST rate.
While companies will be announcing the new prices from Saturday, some will keep them a secret going up till Monday as they make changes to their internal software and pricing mechanism to factor in GST, which will also have an impact across the manufacturing and supply value-chain, including parts-providers and margins of dealers.”There will be no billing from dealerships on Saturday and Sunday and commercial transactions will not be carried out,” said Y S Guleria, senior VP, sales & marketing at Honda Motorcycle and Scooter India. “However, bookings will remain open.”Larger SUVs and sedans will see the maximum price cut while smaller cars will also be marginally cheaper. For example, the Mercedes GLS350 SUV will be cheaper by Rs 3 lakh, while Hyundai’s popular Creta is expected to see a drop between Rs 40,000 and Rs 60,000.
On the other hand, small car Grand i10 will be cheaper by Rs 3,000 to Rs 14,000, the maximum cut happening in Mumbai for the diesel variant, officials said.“The final prices are still being worked out, but we have already assured customers that even if they buy in the pre-GST regime, the prices will be protected. Any change in prices, if it works in the customer’s favor, will be adequately taken care off,” a Hyundai official said.
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