Impact of GST on new car prices

Also read:Impact of GST on new bike prices

With GST now implemented, we take a look at its impact on car prices. While most vehicle categories were expected to see a reduction in taxation, it remained to be seen how much of this benefit was going to be passed down to the consumer.

With the new tax structure now in effect, most cars from major manufacturers have seen reductions, but hybrids are subject to a 12.7 percent hike in effective tax. The move is a result of the government's drive to promote electric vehicles, as hybrids were reported to be gaining an undeserved advantage.

Honda
Honda has announced GST price cuts on various models ranging from Rs. 5,000 for the Amaze and upto Rs. 28,000 for the City. CR-V entry level variant is cheaper by 1,24,000 while the pricing for the Honda Accord hybrid remains the same.

Maruti Suzuki
Maruti Suzuki has updated its prices and is offering up to a 3 percent cut on most models, except the SHVS-equipped Ciaz and Ertiga diesels which get price hikes of Rs 1.88 and Rs 1.69 lakh, respectively, due to the increase in duty.

Tata Motors 
Following the rollout of GST, Tata Motors has announced a price cut of upto 12 percent in the range of Rs 3,300 to Rs 2,17,000 depending on the model and variant.

Mahindra 
Utility vehicle major Mahindra has announced a reduction in prices of large UVs, SUVs by an average of 6.9 percent. Prices of small cars have been cut by an average of 1.4 percent. However, hybrid vehicles will see a marginal increase in prices since the GST rates on hybrid vehicles are significantly higher, the carmaker said in a statement today. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes.

Toyota
Innova Crysta prices have dropped by up to Rs 1.14 lakh and the Fortuner's by up to Rs 2.69 lakh. With GST making no differentiation between mild and full hybrids, the prices of the hybrid Prius and Camry (both full hybrids) too, have been hiked by Rs 5.24 lakh and Rs 5.1 lakh, respectively.

Hyundai

The Korean maker has finally announced new pricing for its models with a reduction of up to 5.9% 

 

Audi
Audi has dropped prices across its range too. Here's what the models cost now:

Land Rover
All variants of the locally produced Discovery Sport and Evoque get cheaper with price cuts ranging up to Rs.4.28 lakh and Rs 4.43 lakh, respectively. Imported models, including the Range Rover Sport and Range, get price cuts on certain variants.

Jaguar
Jaguar, too, has offered a significant reduction in the prices of its locally assembled models. The F-Type sportscar, though, is more expensive now.

Mercedes-Benz

The German brand has announced a reduction in prices ranging from about 2 percent to 9 percent across its India portfolio. The 'Made in India' cars (CLA, GLA, GLC, GLE, GLS, C-Class, E- Class and S -Class) especially benefit from the implementation of the GST.

All prices in lakh, ex-showroom, New Delhi.