Bonanza: With GST rate-cuts, Mahindra, Tata, and Renault to pass on benefits to customers
Virendra Pandit
New Delhi: Ahead of the festive season, leading four-wheeler manufacturers have announced a reduction in prices and pass on the benefits to customers following the Union Government’s “rationalization” of Goods and Services Tax (GST) and rate cuts in various sectors, including the automobile sector.
According to media reports on Saturday, Mahindra & Mahindra, Tata Motors, and Renault have taken the lead in this regard. Others, including Maruti, are also likely to follow.
These automakers have slashed prices as GST 2.0 rationalized tax slabs, with M&M leading the pack ahead of the September 22 deadline when the new slabs of 5 and 18 percent GST will be rolled out on the first day of Navaratri.
M&M said it will slash prices up to Rs. 1.56 lakh across its SUV portfolio. The revised prices, effective from September 6, come ahead of the September 22 deadline when the new tax slabs will be enforced.
The company said the Bolero/Neo range will now be cheaper by Rs. 1.27 lakh, while the XUV3XO variants will have price cuts of Rs. 1.4 lakh (petrol) and Rs. 1.56 lakh (diesel), respectively.
The price of Thar 2WD (diesel) has been cut by Rs. 1.35 lakh, and the Thar 4WD (diesel) and Scorpio Classic by Rs. 1.01 lakh each. Prices of the Scorpio-N have dropped by Rs. 1.45 lakh, the Thar Roxx by Rs. 1.33 lakh, and the XUV700 by Rs. 1.43 lakh.
Renault India also announced price cuts of up to Rs. 96,395 across its product line, effective for all deliveries from September 22. Bookings at the revised rates, however, are already open. Under the new pricing, the Kwid is cheaper by Rs. 55,095, Tiber by Rs. 80,195 and the Kiger by Rs. 96,395.
Tata Motors will offer price cuts ranging between Rs. 65,000 and Rs. 1.45 lakh across its passenger vehicle line-up.
The GST Council recently reduced slabs to 5 percent and 18 percent. As a result, small cars with petrol, LPG and CNG engines up to 1,200 cc, and diesel cars up to 1,500 cc, now fall under the 18 percent slab instead of 28 percent. Motorcycles up to 350 cc also move to 18 percent, while EVs remain at 5 percent. Larger cars, big hybrids, motorcycles above 350 cc and racing cars will attract a 40 percent levy.
