Top automaker Maruti Suzuki India (MSI) has slashed prices of its models by up to three per cent with immediate effect in order to pass on GST benefit to its customers. The company, however, has hiked prices of diesel variants of Ciaz and Ertiga models with smart hybrid technology by over Rs 1 lakh because of withdrawal of tax concessions on mild hybrid vehicles under the GST framework.
In a statement today, the company said it has transmitted the entire benefit of the GST rates on vehicles to its buyers.
"The ex-showroom prices of Maruti Suzuki models have come down by up to three per cent. The rate of reduction varies across locations depending on VAT rates applicable prior to GST," MSI said. The price hike on the models will also vary from state to state.
Tata Motors-owned Jaguar Land Rover also today reduced prices of its entire vehicle range in India on an average by seven per cent to pass on benefit of reduced tax incidence under GST.
The company said it is fully geared up for the new tax regime and its vehicles will be available under the new prices with immediate effect from any of its 25 retail outlets across India.
"On an average, on the basis of ex-showroom Delhi prices, the reduction in the prices of our vehicles across the range will be around seven per cent," said Jaguar Land Rover India President and Managing Director Rohit Suri.
The Jaguar portfolio in India includes XE with a starting price of Rs 34.64 lakh, XF starting at Rs 44.89 lakh, F-PACE Rs 67.37 lakh onward and XJ with a starting point of Rs 97.39 lakh (exshowroom prices across India).
On the other hand, the Land Rover range includes the Discovery Sport starting at Rs 40.04 lakh, Range Rover Evoque at Rs 42.37 lakh upward, Range Rover Sport beginning at Rs 89.44 lakh and Range Rover with a starting price point of Rs 1.59 crore (ex-showroom in India).
Under the new GST, large luxury cars and SUVs with engine capacity of over 1,500 cc are slated to attract a 15 per cent cess over and above peak rate of 28 per cent, thereby bringing down the overall tax incidence compared to around 50 per cent under the previous taxation system.
Asked about the company's preparedness of the new system, Suri said: "We are absolutely ready. We have been working on this for the last eight-nine months to be ready. Although we had to modify some of the earlier plans closer to GST implementation, even our partners and supply chain is ready."
He said that with the GST regime kicking in, the company expects reduction in transportation time for its vehicles from the company's Pune facility to different parts of the country.