The Indian Government has announced GST 2.0 tax rates and new slabs which are set to take place from September 22nd. A few industries have expressed concerns and scepticism regarding passing on the full benefits to customers as they do not get to adjust Input Tax Credit rates (GST paid on input costs and materials).
Brand-Wise Car Price Cuts
Automotive sector, however, still has a lot of wiggle room to adjust Input Tax Credit. Most of the automotive brands are passing on the full GST reform benefits to buyers. Depending on the brand and model, GST 2.0 has ensured price cuts of up to Rs 30.4 lakh (Ex-sh). Let’s take a closer look at brand-wise car price cuts facilitated by GST 2.0.
Honda Cars India Ltd – Up To Rs 95,500
HCIL has just announced that it will reduce the car prices by up to Rs 95,500 (Ex-sh) with reduced GST 2.0 tax rates. Owing to its Sub 4m length constraint, Amaze gets the most price cut within Honda’s lineup of up to Rs 95,500. C Segment vehicles like Elevate SUV and City sedan, on the other hand, get a price cut of up to Rs 58,500 (Ex-sh).
Renault India Pvt Ltd – Up To Rs 96,395
After launching the Kiger facelift, Renault has introduced a price cut on their cars owing to GST 2.0 revised rates. The company is passing on full benefits of GST 2.0 reforms to buyers by offering price cuts of up to Rs 96,395 (Ex-sh). All three Renault models in India are sub 4m in length, enjoying maximum tax cuts.
Nissan Motor India Pvt Ltd – Up To Rs 1,00,400
With just one horse in its chariot, NMIPL has been pushing ahead in the Indian market with Magnite Sub 4m SUV. Being a B Segment vehicle, Magnite now falls under the 18% GST rates attracting a price cut of up to Rs 1,00,400 (Ex-sh).
Maruti Suzuki India Ltd – Up To Rs 1,11,190 (Arena)
India’s largest car manufacturer by volume, Maruti Suzuki, is passing on the full benefits of GST 2.0 reforms. Maruti Suzuki operates India’s largest sub 4m vehicle portfolio and benefits massively from the new GST rates. Price cuts are up to Rs 1,11,190 on premium sub 4m vehicles like Dzire. Sadly, Brezza misses out on 18% GST slab owing to its 1.5L engine.
Tata Motors Ltd – Up To Rs 1,55,000
One of India’s leading passenger car manufacturers, Tata Motors Ltd, is also passing on the full GST 2.0 benefits over to the buyers. This has created a major price cut in Tata portfolio that goes till Rs 1,55,000 for Nexon, owing to its sub 4m nature. Other Tata products get a price cut too, as seen in the table below.
Mahindra & Mahindra Ltd – Up To Rs 1,56100
India’s favourite SUV manufacturer (traditional SUVs), Mahindra & Mahindra Ltd, is passing on full benefits of GST 2.0 to its buyers. Max discounts go up to Rs 1,56,100 for XUV3XO, which fully benefits from GST 2.0 reforms owing to its sub 4m nature. All other Mahindra vehicles including the sub 4m Thar 3-Door also get attractive price cuts as seen in the table below.
Hyundai Motor India Ltd – Up To Rs 2,40,303
The maker of Creta SUV, Hyundai Motor India Ltd, is offering a price cut of up to Rs 2,40,303 with its portfolio. This is due to the new GST 2.0 reforms and the company is passing on GST benefits to buyers who can now afford their favourite Hyundai product. Highest price cut is with Tucson, while highest price cut within sub 4m segment is with Venue at Rs 1,23,659.
JSW MG Motor India Pvt Ltd – Up To Rs 3,04,000
After launching MG M9 and Cyberster sportscar in India, JSW MG Motor India Pvt Ltd is stepping into the festivities with a major price cut with its ICE portfolio. The company is passing on the GST 2.0 reform benefits to buyers offering price cuts of up to Rs 3,04,000 with Gloster SUV. Hector and Astor also get respectable benefits.
Skoda Auto Volkswagen India Pvt Ltd – Up To Rs 3,28,267
SAVWIPL is passing on the GST 2.0 tax benefits to buyers with price cuts of up to Rs 3,28,267 offered with Skoda Kodiaq SUV. With Volkswagen vehicles, max price cut is with Tiguan R Line up to 3,26,900. Falling in the lucrative sub 4m segment, Skoda Kylaq enjoyed a price cut of up to Rs 2,26,900.
Kia India Pvt Ltd – Up To Rs 4,48,542
One of India’s leading mass market premium vehicle maker, Kia India Pvt Ltd, is also stepping into the festivities with a major price cut with its ICE portfolio. The company is passing on full GST 2.0 benefits of up to Rs 4,48,542 with Kia Carnival. Notably, Kia’s sub 4m SUVs like Sonet and Syros has received some of the healthiest price cuts of up to Rs 1,86,003.
Mercedes-Benz India Pvt Ltd – Up To Rs 11 Lakh
The three-pointed star has introduced a price cut on their made-in-India ICE portfolio of up to Rs 11 lakh with its flagship S-Class sedan. Other vehicles have also received respectable price drops now that 28% GST + 22% cess has been reduced to a flat 40% GST rate.
Jaguar Land Rover India Ltd
The highest price cuts announced till now with GST 2.0 reforms is Jaguar Land Rover India Ltd. The max price cut is up to Rs 30.4 lakh. This is with Land Rover Range Rover (full size), which is locally assembled in India. Defender and Discovery lineups have received respectable price cuts as well.
