With the list of carmakers announcing price cuts in relation to Goods and Services Tax (GST) growing longer, Renault has become the latest to follow suit. The French car brand has extended GST benefits to its customers in the form of price reductions of up to 7 percent on its product lineup. The GST price cut on Renault cars will range from Rs 5,200 and Rs 1.04 lakh. Previously, SUVs and cars larger than four metres were taxed at about 50 percent before GST, and have now seen a tax cut by 7 percent. Not just large cars, but smaller cars too have witnessed reductions in taxes. Small petrol cars which were earlier taxed at 31.4 percent will now be taxed at 29 percent and small diesel cars taxed previously at 33.4 percent will now have to pay 31 percent tax.
Renault has cut the price of the Kwid Climber AMT by Rs 5,200 to Rs 29,500, price reduction on the SUV Duster RXZ AWD ranges from Rs 30,400 to Rs 1,04,700 and that of Lodgy Stepway RXZ between Rs 25,700 to Rs 88,600.
"Reflecting our customer-first approach, we have decided to pass on GST benefits to our customers, further enhancing the value proposition of our products," Renault India Operations Country CEO and Managing Director Sumit Sawhney said in a statement.
"While there may be a short-term disruption as the whole system adapts to this economic transformation, but in the long term it will be very positive for the economy and corporate India," Sawhney added.