Days ahead of the implementation of the Goods Service Tax/GST, we peek into the impact on car prices across segments.
Come July 1st and India will embrace goods and services tax (GST) that will go down as one of the most important events in the Indian history. While GST will impact various industries, the automotive fraternity will also feel the heat with prices of most of the cars set to go up. Days ahead of the implementation of the ‘one nation one tax’ system, we peek into the impact on car prices across segments. Read More – Impact Of GST On Car & Bike Prices
Fearing drop in sales post July 1, 2017, carmakers in India lately doled out lucrative offers to lure customers to the showrooms. While some of you might have benefitted from these mouth-watering offers from the likes of Ford, Hyundai, Honda, Datsun, Maruti and Mercedes, those who were unaware and are planning to make a purchase post July 1, will have to shell out some extra money, courtesy GST.
The money spinning models like Maruti Alto and Renault Kwid will witness hike in price by 3 to 5%. Currently, these mini-hatchbacks attract 25-27% tax, which after GST will go beyond 29%. With this, the prices of Renault Kwid may go up by Rs 7,900.
As for the mid-size sedan segment, one of the oldest players in the segment and Honda’s stellar model, City will also bear the brunt of change in tax structure with prices likely to shoot up to Rs 10,735. The tax on the mid-size sedans is set to change from the current 41.5% to 43%, making models like City, Ciaz and Verna costlier.
Out of all the cars, the worst hit will be the small diesel cars in India with prices expected to go up by Rs 21,000. Maruti’s new Dzire that was launched last month in India, will be one of the several models to get a price hike of more than Rs 21,000.
On the contrary, luxury cars that cost more than Rs 50 lakh will be benefitted with prices set to go down between Rs 50,000 to Rs 2.5 lakh. Among the several models that fall in this category, Toyota’s popular SUV Fortuner will also see drop in price by Rs 1,18,000.