- GST on small cars reduced from 28% to 18%, luxury vehicles now taxed at 40% flat
- On-road vehicle prices expected to drop 5% to 8%, passenger cars 2% to 9% cheaper
- Mahindra cuts prices up to Rs 1.45 lakh on models including Scorpio and XUV700
If you have been thinking about bringing a new vehicle home this festive season, things just got a bit easier on your pocket. The government's GST 2.0 reforms have slashed prices for cars across segments, according to NDTV Profit.
According to the revised tax structure, the GST on small cars has come down from 28% to 18%, while luxury vehicles will now attract a flat tax of 40%. The cess has been completely done away with.
According to Kotak Institutional Equities, this is expected to bring down on-road vehicle prices by 5% to 8% on average, with passenger vehicles becoming 2% to 9% cheaper.
Price Cuts Across Automakers
Mahindra & Mahindra
Mahindra has announced major price cuts across its portfolio. Bolero is cheaper by Rs 1.27 lakh, Scorpio by Rs 1.45 lakh, Thar Roxx by Rs 1.33 lakh and XUV700 by Rs 1.43 lakh.
Tata Motors
Tata has announced cuts on both passenger and commercial vehicles. Nexon is cheaper by Rs 1.55 lakh, and Safari by Rs 1.45 lakh. Pickups are down Rs 30,000 to Rs 1.10 lakh, while buses and vans are Rs 1.2 lakh to Rs 4.35 lakh cheaper. Heavy commercial vehicles are also down by Rs 2.8 lakh to Rs 4.65 lakh.
Toyota Kirloskar Motor
Toyota has reduced prices across models. Fortuner has received a price cut of Rs 3.49 lakh, and Legender is down by Rs 3.34 lakh. Similarly, Hilux is cheaper by Rs 2.52 lakh and Vellfire by Rs 2.78 lakh. Innova Crysta is down by Rs 1.8 lakh, while Hycross gets a cut of Rs 1.15 lakh.
Renault India
Kwid now starts at Rs 4.29 lakh, with reductions of Rs 78,000 on Triber and nearly Rs 96,000 on the top-end Kiger. New prices are effective from September 22.
Hyundai Motor India
Hyundai has slashed prices by Rs 2.40 lakh on the Tucson, Rs 1.23 lakh on the Venue, Rs 98,000 on the i20 and Rs 75,000 on the Alcazar. Around 60% of its models now fall under the 18% GST slab.
Audi India
The Audi cars are now cheaper by up to Rs 7.8 lakh. The price cuts include Rs 3.07 lakh on Q3, Rs 2.64 lakh on A4, Rs 3.64 lakh on A6, Rs 4.55 lakh on Q5, Rs 6.15 lakh on Q7 and Rs 7.8 lakh on the flagship Q8.
Mercedes-Benz
Mercedes has announced big price changes, with cuts ranging from Rs 2.6 lakh to Rs 11 lakh. The A200d is cheaper by Rs 2.6 lakh, E-Class LWB by Rs 6 lakh, S450 by Rs 11 lakh and GLE 450 SUV by Rs 8 lakh.
Nissan Motor India
Magnite SUV buyers will save up to Rs 1 lakh, with the base Visia MT now priced under Rs 6 lakh. Top-end Tekna+ CVT also sees a cut of over Rs 1 lakh.
Skoda Auto India
Skoda is combining GST benefits with limited-period offers. Kushaq has been reduced by Rs 66,000, Slavia by Rs 63,000 and Kodiaq by Rs 3.3 lakh.
Maruti Suzuki
Maruti has reduced prices across models such as Alto K10, Wagon R, Swift and Ertiga, with cuts ranging between Rs 40,000 and Rs 2.25 lakh.
