GST Impact: Maruti, Hyundai, Mahindra, Ford Offer Discounts On Cars
While smaller segment car makers are offering substantial discounts, luxury car makers are offering 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 offering massive discounts courtesy GST, which will be rolled 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 demand 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 additional cess of 1-15% applicable across various segments. While small petrol cars with engine capacity less than 1,200 cc will attract 1 per cent cess, that with a diesel engine of less than 1,500 cc will attract 3 per cent cess. Large cars with engines larger than 1,500cc and SUVs with length more than 4 metres and engine capacity greater than 1,500cc will attract a cess of 15 per cent.
Several carmakers like Maruti, Hyundai, Mahindra, Ford, etc have announced offers up to Rs 2.5 lakh. Maruti Suzuki, the country’s largest carmaker is offering discounts of Rs. 25,000-35,000 on Alto and Swift. Hyundai, the Korean automaker is offering 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 new Xcent and Rs. 2,50,000 on Santa Fe. Mahindra and Mahindra (M&M) is also offering discounts on their several models. It is offering 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 small car Micra. Its Datsun is packaging deals with free insurance and reduced 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 enjoy benefits of up to Rs. 76,000 and Rs 100,000 on Polo and Vento cars booked till June 20 and billed till June 30. American carmaker Ford is offering discounts of Rs. 20,000-30000 on EcoSport and Rs. 10,000-25,000 on Figo and Aspire depending on the variant. Isuzu Motors India is offering discounts of up to Rs 1.5 lakh on its models such as the newly launched MU-X and the V-cross.
The range of discounts is highest in luxury cars. German Luxury carmaker Audi is giving discounts of up to Rs. 10 Lakh under its ‘Audi Rush Price’ scheme. An Audi A3 Premium Plus TDI diesel version, which retails currently 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 reduced prices by up to Rs. 7.5 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 offering customers financing at 7.90%, complimentary service and maintenance of three years, free insurance for the 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 4 lakh.
Bajaj Auto has said that it will be offering discounts of up to Rs. 4,500 on its entire range of motorcycles before GST is actually implemented from 1 July 2017. Royal Enfield has announced that it will be extending the GST benefits on the on-road price of its bikes starting from 17th June itself. Luxury bike makers are offering minimum to no discounts on their line-up as they are expecting the prices to jack up post 1st July, 2017.
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