1. GST impact on cars: Manufacturers cut prices, pass on new tax benefits to buyers; Honda slashes prices by up to Rs 1.31 lakh; Amaze price cut by Rs 14,825

GST impact on cars: Manufacturers cut prices, pass on new tax benefits to buyers; Honda slashes prices by up to Rs 1.31 lakh; Amaze price cut by Rs 14,825

Automakers have reduced the prices on their models to pass the benefits from GST to customers.

By: and | Chennai/new Delhi | Published: July 4, 2017 6:56 AM
Honda Cars India (HCIL) cut prices by up to Rs 1.31 lakh with immediate effect to pass on the benefit to consumers. (Reuters)

Automakers have reduced the prices on their models to pass the benefits from GST to customers. Honda Cars India (HCIL) cut prices by up to Rs 1.31 lakh with immediate effect to pass on the benefit to consumers. The company reduced price of its hatchback Brio by up to Rs 12,279 and that of compact sedan Amaze by up to Rs 14,825. Besides, it has slashed price of premium hatchback Jazz by up to Rs 10,031 and that of its recently launched model WR-V by up to Rs 10,064. Likewise, price of mid-sized sedan City has been reduced in the range of Rs 16,510 and Rs 28,005. The company’s SUV BR-V prices will come down by up to Rs 30,387. Its premium SUV CR-V has also seen a price drop of up to Rs 1,31,663. The revised prices are for ex-showroom Delhi and will vary from state to state. HCIL, however, is yet to decide on the revised pricing of Accord Hybrid, which is set to become costlier with GST rates on hybrid vehicles going up. Ford India has also reduced vehicle prices by up to 4.5% with immediate effect.

While the reduction in prices will vary from state to state, the highest cut will be inMumbai with the company’s flagship SUV Endeavour becoming cheaper by up to Rs 3 lakh. In Mumbai, the prices will go down in the range of Rs 28,000 on Figo to Rs 3 lakh on Endeavour. “We will pass on the benefits in the range of up to 4.5% across the range,” a Ford India spokesperson told PTI. In Delhi, price of hatchback Figo has been cut by Rs 2,000 and that of compact SUV Ecosport by up to Rs 8,000.

Price of premium SUV Endeavour has been reduced by up to Rs 1.5 lakh. Ford India sells a range of vehicles starting from hatchback Figo to premium SUV Endeavour, that were priced between Rs 4.75 lakh to Rs 31.5 lakh (ex-showroom). The company, however, did not share details about the revised pricing of its iconic sports car Mustang. It is expected to go up. TVS Motor has reduced prices in the range of `350 to `1,500 in the commuter segment while in the premium category it has been cut up to Rs 4,150 depending on each state.

Similarly, Honda Motorcycle and Scooter India (HMSI) said the savings for customers will be up to Rs 5,500. “In June 2017, customers preferred to buy Honda two wheelers even though many in the industry offered pre-GST discounts. Starting July 1, Honda is passing on the GST benefit applicable in most of the states to our valued customers who now get significant savings going up to Rs 5,500 depending on the model and the state of purchase,” said, Yadvinder Singh Guleria, SVP – sales and marketing, HMSI.

According to Suzuki Motorcycle India, under the GST, consumer and premium segment vehicles will witness a 2% decrease in taxes and its vehicles which fall under the 28% tax slab will see a reduction in price. Market leader Hero MotoCorp has already announced the passing of GST benefits to the customers with a reduction in the prices of models across its product portfolio in most of the states.

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