GST Impact: Tata Motors Cuts Passenger Vehicle Prices By Up To 12% 

India’s largest automobile company Tata Motors Ltd. on Wednesday revised downwards the prices of its passenger vehicles to synchronise rates with the Goods and Services Tax (GST) regime.

The company slashed prices up to 12 percent between Rs 3,300 and Rs 2.17 lakh depending on the model and variant, it said in a statement.

Under GST, most vehicles will be taxed at 28 percent, with an additional cess of 1 percent, 3 percent, or 15 percent, based on their categories.

GST Impact On Automakers

Post the rollout of the new indirect tax regime, most automobile companies slashed makers revised their price list.

• Maruti Suzuki Ltd. slashed prices of most of its models by up to 3 percent with immediate effect except for diesel versions.
• Mahindra and Mahindra Ltd. 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.
• Honda Cars India cut prices by up to Rs 1.31 lakh.
• Ford India also reduced vehicle prices by up to 4.5 percent.
• JLR and BMW reduced the prices in the range of Rs 2,300 to over Rs 2 lakh of different models.

Shares of Tata Motors, gained as much as 1.72 percent to Rs 434.25 on the National Stock Exchange after the price revision announcement.