GST Effect: Car And Bike Makers Announce Price Cuts Of Up To Rs 3 Lakh
With the overall tax incidence coming down under GST, companies slash prices with immediate effect.
- Automakers announced price cuts ranging from Rs 350 in case of a two-wheeler, to Rs 3 lakh on Ford’s SUV Endeavour.
- Honda Cars India cut prices by up to Rs 1.31 lakh with immediate effect.
- Market leader Hero MotoCorp cut prices by up to Rs 1,800.
- TVS Motor reduced prices of its models by up to Rs 4,150.
Passing on to customers the benefits under the new GST regime, automakers on Monday announced price cuts ranging from Rs 350 in case of two-wheeler, to Rs 3 lakh on Ford's SUV Endeavour.
Honda Cars India, Ford as well as two-wheeler makers TVS Motor Company, Honda Motorcycle & Scooter India and Suzuki Motorcycle – all announced rate cuts arising out of the introduction of Goods and Services Tax from July 1.
With the overall tax incidence on many of its car models coming down under GST, Honda Cars India Ltd. (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 percent with immediate effect. While the reduction in prices will vary from state to state, the highest cut will be in Mumbai 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 percent 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.
In the two-wheeler segment, TVS Motor Company has reduced prices of its models by up to Rs 4,150.
The price reduction is in the range of Rs 350 to Rs 1,500 in the commuter segment. In the premium segment products, the prices are reduced up to Rs 4,150 depending on each state.TVS Motor Statement
Another two-wheeler maker Honda Motorcycle and Scooter India (HMSI) said it has slashed prices of its products by up to Rs 5,500 depending on model and state. The reduced prices effective from July 1, HMSI Senior Vice-President, sales and marketing, Yadvinder Singh Guleria said.
Suzuki Motorcycle India and Yamaha have also reduced prices passing on GST benefit to customers.
Market leader Hero MotoCorp has also cut prices by up to Rs 1,800 banking on the GST launch.
Various automakers such as Maruti Suzuki, Toyota Jaguar Land Rover, BMW, Mercedes-Benz and Audi have already reduced prices post GST implementation.
