Leading Indian automakers have started passing on the benefits of recent GST rate cuts to customers. Tata Motors announced price reductions of up to ₹1.55 lakh across various models. Mahindra and Mahindra also stated that they would share the full benefit with buyers.
This news follows a statement from Maruti Suzuki India’s Chairman, RC Bhargava, who confirmed that the company will reduce prices per the new tax system. “With the latest GST reduction, we project that the small car market, which was declining, will now grow this year by over 10 %,” Bhargava said.
10% Price drop in Maruti Cars
He mentioned that Maruti’s Alto could see a price drop of ₹40,000 to ₹50,000, while the Wagon R might be ₹60,000 to ₹67,000 cheaper.
The GST Council’s decision to adjust tax rates is the most significant change for the auto industry in years. The tax on small cars, which are under 4 meters in length with engines under 1200cc for petrol and 1500cc for diesel, has been cut to 18% from the previous range of 29% to 31%, including cess. For bigger cars, which exceed 4 meters in length and have over 1500cc engine capacity or 170 mm ground clearance, the total tax has been reduced to 40% from 48% to 50%.
Price reductions on Tata Motors
Tata Motors has published a list of price reductions by model, showing savings of
- ₹75,000 on the Tiago
- ₹1.10 lakh on the Altroz
- ₹85,000 on the Punch
- ₹1.55 lakh on the Nexon
- ₹1.40 lakh on the Harrier
- ₹1.45 lakh on the Safari
Along with Maruti Suzuki, other models like the Tigor and Curvv will also see price drops. The company noted that exact discounts may vary by variant and advised customers to check with authorized showrooms.
“This reduction in GST is timely,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. “We are passing on the entire benefit to the customer.”
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