Maruti Suzuki registers over 40 percent growth in premium car sales, GST impact leads to 3 percent price cut

Maruti Suzuki's premium segment sales grew by more than 40%, mostly driven by Ciaz, Vitara Brezza and the S-Cross

By:Published: July 5, 2017 3:10:47 PM

Maruti Suzuki has registered a 7.6% year-on-year growth in sales in the month of June at 1.06 lakh units, and a 1% growth in domestic passenger vehicle sales at 93,057 units. There was a decline of 8% in the entry level segment, however, the premium segment sales grew by more than 40%, mostly driven by Ciaz, Vitara Brezza and the S-Cross. The brand also witnessed a 96% year-on-year hike in exports at 13,131 units this month. According to the brand, sales had slowed down in the time before Goods and Services Tax was implemented, and hence it had slowed down vehicle dispatches to dealers, along with announcing discounts. Maruti Suzuki was one of many brands which announced pre-GST discounts on their line up. With GST now effective, Maruti has implemented price cuts of up to 3% on various categories in its product line up.

Previously, cars had multiple taxes levied upon them, including Excise Duty, NCCD (National Calamity Contingency Duty) VAT (Value Added Tax), Infrastructure Cess, CST (Central Sales Tax), however, now the tax structure has been simplified to GST plus cess, depending upon the vehicle category.

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.

Maruti Suzuki, which holds the highest share of about 49 percent in the passenger vehicle market in India, has seen a dip in its prices across its entire portfolio. The following prices are all ex-showroom, Delhi:

The Ignis which used to retail at a starting price of Rs 4.59 lakh is now approximately Rs 9,000 cheaper. The Alto 800 too gets an approximate price reduction of Rs 5,000, while larger cars from the company’s portfolio have seen an even larger price cut.

The Vitara Brezza which started from Rs 7.26 lakh has now seen a drop of about Rs 60,000. The Ciaz has also seen a price dip of around Rs 30,000 which now starts from Rs 7.45 lakh. All the aforementioned prices are according to a dealership in Delhi.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News