The GST Council had recently announced a revision in GST cess of vehicles with engines larger than 1.5 litre (both petrol and diesel) as well as on those with more than 170 mm of ground clearance and 4 metre plus length. The price hike has been implemented on mid-size, luxury vehicle and SUVs from 11th September across the country. Most car manufacturers in India have increased the prices of their respective models following the announcement. Hyundai India has also revised the prices of some of its products in the country. The carmaker has increased the price of the newly launched Verna by up to Rs 29,000. Hyundai Elantra's prices have been increased by Rs 50,312 to Rs 75,991. Hyundai Creta prices have been increased between a range of Rs 20,900 to Rs 55,375, depending on the variant. The Tucson SUV has become dearer by Rs 64,828 to Rs. 84,867. The company has also increased the prices of its premium hatchback Elite i20 for only the petrol automatic variant by up to Rs 12,547.
Hyundai Motors India Ltd. also said, “Implementation of GST was to create a single unified large market with simplified tax structure for the auto industry. However, the recent rolling back to multiple rates with Pre GST classification has come as a setback to industry shaking the confidence of Auto manufacturers. We expect the coming festive season will witness low customer sentiment on a new purchase decision. Further, in the absence of consistent and long-term policy, the investment for new products and new technology will be adversely impacted.”