GST impact: As car prices fall by way of up to Rs 3 lakh, check out which all grew to become inexpensive

GST impact: As car prices fall by way of up to Rs 3 lakh, check out which all grew to become inexpensive

GST Impact : car prices

Auto companies are adjusting the prices of their products after the government rolled out goods and services tax (GST) on 1 July.

Under the GST rates, cars will attract the top rate of 28 percent with a cess in the range of 1 to 15 percent on top of it.

While small petrol cars with engine less than 1,200 cc will attract 1 percent cess, that with a diesel engine of less than 1,500 cc will attract 3 percent cess.

Large cars with engine greater than 1,500 cc and SUVs with length more than 4 metres and engine greater than 1,500 cc will attract cess of 15 percent over and above peak rate of 28 percent.

Hybrid vehicles will also fall in the category under GST. In comparison, tax on electric vehicles has been kept at 12 percent. At present hybrid vehicles attract excise duty of 12.5 percent, similar to the ones on entry level small cars such as Tata Nano or Maruti Alto.

Earlier, the tax incidence on cars ranged between 28 percent and 45 percent. Under GST, the maximum rate is 43 percent.

Here’s how companies are reacting to the GST rollout:

Maruti Suzuki

The country’s top automaker Maruti Suzuki India (MSI) cut prices of most of its models by up to 3 percent. It has cut the price of the Alto in the range of Rs 2,300 to Rs 5,400, the WagonRRs 5,300-Rs 8,300 and that of the Swift between Rs 6,700 and Rs 10,700.

It has also reduced the price of the Baleno in the range of Rs 6,600 and Rs 13,100 and that of the Dzire ranging between Rs 8,100 and Rs 15,100.

Representational image. Reuters

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 SUV Vitara Brezza has become cheaper by Rs 10,400-14,700, while the S-crossby Rs 17,700-21,300.

However, the Ciaz and Ertiga models with smart hybrid technology have become costlier due to withdrawal of tax concessions on mild hybrid vehicles under the GST. Diesel versions of the sedan Ciaz and MPV Ertiga with mild hybrid technology saw prices increase by over Rs 1 lakh.

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Toyota Kirloskar Motor

The company cut prices ranging between Rs 10,500 and Rs 2.17 lakh (ex-showroom Bengaluru).

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, Platinum Etios by Rs 24,500 and that of Etios Liva by up to Rs 10,500.

However, the prices of hybrid variants Toyota Camry and Toyota Prius increased by Rs 3.5 lakh in Bengaluru and up to Rs 5.24 lakhs in Delhi as per applicable tax under GST.

Honda Cars India

The company cut the prices of its models by up to Rs 1.31 lakh.

The company has cut price of its hatchback Brio by up to Rs 12,279 and that of the compact sedan Amaze by up to Rs 14,825. It has slashed price of the Jazz by up to Rs 10,031 and that of its recently launched model WR-V by up to Rs 10,064.

The mid-sized sedan City has seen a reduction in the range of Rs 16,510 and Rs 28,005. The BR-V prices will come down by up to Rs 30,387.

The premium SUV CR-V has also seen a price drop of up to Rs 1,31,663.

Honda is yet to decide on the revised pricing of Accord Hybrid. The revised prices are for ex-showroom Delhi and will vary from state to state.


The company has cut the prices by up to 4.5 percent. The steepest cut will be in Mumbai with the company’s flagship SUV Endeavour becoming cheaper by up to Rs 3 lakh.

In Delhi, the price of Figo has been cut by Rs 2,000, that of the compact SUV Ecosport by up to Rs 8,000, and the SUV Endeavour by up to Rs 1.5 lakh.

In Mumbai, the prices will go down in the range of Rs 28,000 on the Figo to Rs 3 lakh on the Endeavour.

TVS Motor

The two-wheeler major TVS Motor Company has reduced prices of its models by up to Rs 4,150 to hand down GST benefit to customers.

Honda Motorcycle and Scooter India

The company has slashed prices of its products by up to Rs 5,500 depending on model and state

Hero MotoCorp

The company has cut prices by up to Rs 1,800. The company sells a range of bikes priced between Rs 40,000 and Rs 1.1 lakh. It said, in one or two states, such as Haryana, where the pre-GST rates were lower than the post-GST rate, the prices of a few models may go up marginally.


The German luxury car maker cut prices 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 hybrid model i8 will witnessed a hike of Rs 4.8 lakh to Rs 2.28 crore.

Jaguar Land Rover

The Tata Motors-owned company has reduced prices of its entire vehicle range in India on an average by 7 percent.

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).

Mercedes Benz

The company has cut prices of its vehicles produced in India by up to Rs 7 lakh.

Mercedes Benz India locally produces nine models — CLA sedan, SUVs GLA, GLC, GLE and GLS, luxury sedans C-Class, E- Class, S -Class and Maybach S 500 — which are priced between Rs 32 lakh and Rs 1.87 crore (ex-showroom Delhi).

The price reduction ranges from Rs 1.4 lakh on the CLA sedan to Rs 7 lakh on Maybach S 500. Price reduction varies by state between 2 percent to 9 percent and is dependent on current tax
structure and local body taxes of states, the company said.

Latest Updates on GST – Goods and Services Tax Info‎‎‎


Source: firstpost

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