GST Impact on Tata Motors: Does it make sense to buy a Tata car after a discount of over Rs 2 lakh

As the Goods and Services Tax continues to streamline the business process in the nation manufacturers continue to pass down the benefits to the end users

By: | Updated: July 6, 2017 12:28 PM

Across the nation and a few international players have been quite outspoken about the GST making businesses simpler. What’s more important however as a consumer is a speed at which most big manufacturers have been able to pass down the cost effective benefits to the customer. Now whether this is a direct result of free market pressure or an honest initiative in itself is unclear. Either way we are happy that as of now at least it’s raining discounts. Speaking of discounts, Tata has today made official a slew of discounts ranging from 3,300 rupees to 2.17 lakhs on all their variants. Passing down up to 12% per cent in GST benefit on all their models to their customers. Tata motors, passenger vehicles president Mayank Pareek has also been equally vocal in “wholeheartedly”  welcoming the GST and the union government saying that the new Tax structure will be particularly advantageous to the automotive industry, and said it will get better as further implementations take place.

 

Strangely, Tata has not been very specific about how much exactly each model will benefit, and whether these benefits will be available in soft form (discounts on insurance, after sales or cashed out maintenance plans) or full blown cash discounts. Tata also insists that these discounts will take place with effect from the first of July, across their range depending on model and variant. We expect that more discounts will follow as GST continues to etch its way into a business over the course of the coming year.

 

However on that note, 12% does sound like a sizeable discount worth capitalizing on, so if you have had a Tata on your mind, we advise that you head to your nearest showroom soon. This especially considering that Tata has come a long way in terms of quality and customer service. A testimony to that is the 2016 JD Power CSI (Customer Service Index) Survey wherein the Indian carmaker shared second place with Hyundai Motor India. The company jumped 39 points at 888 points and coming above the industry average of 880 points. That is quite an achievement as Tata Motors suffered in the aftersales department for a lot of time reducing the brand's sentiment.

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