M&M Cuts Vehicle Prices To Pass On GST Benefits
M&M slashed prices of its utility vehicle lineup by nearly 7 percent on average.
India’s largest SUV and tractor manufacturer Mahindra & Mahindra Ltd. (M&M Ltd.) on Tuesday revised prices of its vehicles to synchronize their rates with the Goods and Services Tax regime.
The company slashed prices of its utility vehicle lineup by an average 6.9 percent, while prices of small cars were cut by an average of 1.4 percent, according to a media statement. End-prices for light commercial vehicles and heavy commercial vehicles too have been reduced by an average 1.1 percent and 0.5 percent respectively.
The change in prices will vary across states and cities within a state, due to the differing levels of pre-GST local taxes, the company said in the statement.
However, price of hybrid vehicles have been increased marginally as the GST rate on such autos are “significantly higher”, Mahindra said. Under GST, hybrid vehicles have been included in the 28 percent bracket, attracting the highest cess of 15 percent.
Prices of tractors, however, remained unchanged. Since tractor manufacturers will receive an input tax credit, the impact of GST would be neutral, the statement added.
With the overall tax incidence on many vehicles coming down under GST, 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. Various automakers such as Maruti Suzuki, Toyota Jaguar Land Rover, BMW, Mercedes-Benz and Audi have already reduced prices post GST implementation.