GST effect: You may be a step closer to your dream car as Maruti, Toyota, JLR, BMW slash prices. Details hereMaruti, Toyota, JLR and BMW today announced reduction in the car prices in the range of Rs 2,300 to over Rs 2 lakh of different models to pass on to consumers the benefit of lower tax incidence under the GST regime.
Hours after India’s top automaker Maruti Suzuki announced a cut in prices of select cars, other companies like Toyota Kirloskar, Jaguar Land Rover (JLR) and BMW also reduced the prices in the range of Rs 2,300 to over Rs 2 lakh on different models. The car prices have been reduced to pass on to consumers the benefit of lower tax incidence under the Goods and Services Tax. The GST rate on cars varies from segment to segment but most of them will have lower tax rate under the new tax regime. Hybrid cars will, however, be taxed at higher rate under the GST.
Under the GST, large luxury cars and SUVs with engine capacity of over 1,500 cc are slated to attract a 15 per cent cess over and above peak rate of 28 per cent, thereby bringing down the overall tax incidence compared to around 50 per cent under the previous taxation system. The reduction in the prices will be different in each state, depending on the Value Added Tax (VAT) which, along with a dozen other taxes, has been subsumed by the GST.
Here is the cut in price by different companies:
Maruti Suzuki India (MSI) has slashed prices of most of its models by up to 3 per cent with immediate effect except for diesel versions of sedan Ciaz and MPV Ertiga with mild hybrid technology, which saw increase in prices by over Rs 1 lakh.
The company sells a range of vehicles from Alto 800 to S-Cross that were priced between Rs 2.46 lakh to Rs 12.03 lakh (ex-showroom Delhi). It has cut the price of Alto in the range of Rs 2,300 to Rs 5,400, WagonR Rs 5,300-Rs 8,300 and that of Swift between Rs 6,700 and Rs 10,700. It has also reduced the price of Baleno in the range of Rs 6,600 and Rs 13,100. The company has also reduced the price of Dzire, ranging between Rs 8,100 and Rs 15,100.
Price of Ertiga petrol has been cut by up to Rs 21,800 while that of petrol powered Ciaz by up to Rs 23,400. 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.
It, however, said Ciaz and Ertiga models with smart hybrid technology have become costlier due to withdrawal of tax concessions on mild hybrid vehicles under the GST.
Toyota Kirloskar Motor also announced slashing prices ranging between Rs 10,500 and Rs 2.17 lakh (ex-showroom Bengaluru).
The company said it has reduced prices of all new Fortuner by up to Rs 2.17 lakh, Innova Crysta by up to Rs 98,500 and Corolla Altis by up to Rs 92,500.
It has also lowered the prices of Platinum Etios by Rs 24,500 and that of Etios Liva by up to Rs 10,500.
The company, however, has hiked the prices of hybrid variants Toyota Camry and Toyota Prius by over Rs 3.5 lakh in Bengaluru and up to Rs 5.24 lakhs in Delhi as per applicable tax under GST.
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.
Tata Motors-owned Jaguar Land Rover has reduced prices of its entire vehicle range in India on an average by 7 per cent to pass on the benefit of reduced tax under GST.
"On an average, on the basis of ex-showroom Delhi prices, the reduction in the prices of our vehicles across the range will be around 7 per cent," Jaguar Land Rover India President and Managing Director Rohit Suri told PTI.
The company said it is fully geared up for the new tax regime and its vehicles will be available under the new prices with immediate effect from any of its 25 retail outlets across India.
The Jaguar portfolio in India includes XE with a starting price of Rs 34.64 lakh, XF starting at Rs 44.89 lakh, F-PACE Rs 67.37 lakh onward and XJ with a starting point of Rs 97.39 lakh (ex-showroom prices across India).
On the other hand, the Land Rover range includes the Discovery Sport starting at Rs 40.04 lakh, Range Rover Evoque at Rs 42.37 lakh upward, Range Rover Sport beginning at Rs 89.44 lakh and Range Rover with a starting price point of Rs 1.59 crore (ex-showroom in India).
Last month, Mercedes-Benz and Audi had announced passing on the GST benefit to customers.