GST Influence: Maruti, Hyundai, Mahindra, Ford Suggest Discounts On Cars
While smaller segment car makers are suggesting substantial discounts, luxury car makers are suggesting massive ones. Some to the tune of 7-8 lakhs. All because of the expected GST rollout.
If you are planning to buy a car, then this is perhaps the best time to bring one home as most of the automakers are suggesting massive discounts courtesy GST, which will be spinned out 1st July, 2017. Similar to what happened during BS-IV emission norms implementation, the OEMs are in a tearing hurry to clear its inventory as they also expect request to be subdued in the present month. Industry analysts said that most of the players have been compelled to come up with discounts as potential customers have held back on purchases expecting prices to come down after GST implementation.
It was reported earlier that a 28% GST rate will be applicable on all cars, with an extra cess of 1-15% applicable across various segments. While puny petrol cars with engine capacity less than 1,200 cc will attract one per cent cess, that with a diesel engine of less than 1,500 cc will attract three per cent cess. Large cars with engines larger than 1,500cc and SUVs with length more than four metres and engine capacity greater than 1,500cc will attract a cess of fifteen per cent.
Several carmakers like Maruti, Hyundai, Mahindra, Ford, etc have announced offers up to Rs Two.Five lakh. Maruti Suzuki, the country’s largest carmaker is suggesting discounts of Rs. 25,000-35,000 on Alto and Swift. Hyundai, the Korean automaker is suggesting price benefits of Rs. 25,000 (on Elite i20), Rs. 45,000 on Eon, Rs. 62,000-73,000 on Grand i10, Rs. 80,000-90,000 on Verna, 25,000 on its fresh Xcent and Rs. Two,50,000 on Santa Fe. Mahindra and Mahindra (M&M) is also suggesting discounts on their several models. It is suggesting benefits of Rs. 27,000 on Scorpio, Rs. 61,000 on TUV300, Rs. 72,000 on KUV100 and Rs. 90,000 on XUV500 till June 30. Nissan offers benefits of up to Rs. 80,000 on sports utility vehicle Terrano and around Rs. 25,000 on petite car Micra. Its Datsun is packaging deals with free insurance and diminished interest rates.
Honda Cars India has assured compensation to buyers in the event of a decline in vehicle prices after the implementation of the GST. Volkswagen customers can also love benefits of up to Rs. 76,000 and Rs 100,000 on Polo and Vento cars booked till June twenty and billed till June 30. American carmaker Ford is suggesting discounts of Rs. 20,000-30000 on EcoSport and Rs. Ten,000-25,000 on Figo and Aspire depending on the variant. Isuzu Motors India is suggesting discounts of up to Rs 1.Five lakh on its models such as the freshly launched MU-X and the V-cross.
The range of discounts is highest in luxury cars. German Luxury carmaker Audi is providing discounts of up to Rs. Ten Lakh under its ‘Audi Rush Price’ scheme. An Audi A3 Premium Plus TDI diesel version, which retails presently at Rs 32.30 lakh (ex-showroom, Delhi), will be now available for Rs. 29.99 lakh. Similarly, while the A4 Technology TDI has a discount of Rs. 6.31 lakh, the A6 Technology TDI also has a massive discount of Rs 7.26 lakh.
Mercedes-Benz India has diminished prices by up to Rs. 7.Five lakh of its locally-assembled models. Its nine Made-in India models such as CLA, GLA, C-Class, E-class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S500 have become slightly more affordable now.
BMW is suggesting customers financing at 7.90%, complimentary service and maintenance of three years, free insurance for the very first year, and assured buyback for up to four years. JLR has also slashed the price of three of its models in India by up to Rs four lakh.
Bajaj Auto has said that it will be suggesting discounts of up to Rs. Four,500 on its entire range of motorcycles before GST is actually implemented from one July 2017. Royal Enfield has announced that it will be extending the GST benefits on the on-road price of its bikes commencing from 17th June itself. Luxury bike makers are suggesting minimum to no discounts on their line-up as they are expecting the prices to jack up post 1st July, 2017.