GST Effect – Cars, Bikes, SUVs Get Cheaper

As the GST regime starts last night, prices of bikes, scooters, SUVs and cars come down, even though the prices of bigger bikes and hybrid cars with engines over 350cc will become dearer.

The GST is supposed to bring tax parity in the country and will lead to “One Nation, One Tax” rule, according to automakers. For the residents of Mumbai, one of the biggest benefits is that Octroi will be subsumed.

When companies will announce the revised prices from Saturday, some will not announce until Monday as they have to make changes to their official software and pricing systems according to GST. It will also lead an impact across the supply and manufacturing value-chain, including margins of dealers and parts-providers.

On Saturday and Sunday, dealership won’t make any billings and won’t conduct any commercial transactions, according to Y S Guleria, Senior VP, Marketing & Sales, Honda Motorcycle and Scooter. Bookings will be open.

Sedans and SUVs will also witness huge price cut and small cars will be cheaper. For instance, Mercedes GLS350 SUV will go cheaper by Rs. 3 Lakh and Hyundai Creta will see the drop of over Rs. 40000 to Rs. 60000.

On the flip side, small cars like Grand i10 will go cheaper by Rs. 3000 to Rs. 14000, a huge cut in Mumbai for diesel model, according to the officials.

According to a Hyundai official, the final prices are yet to be announced. But the automakers already assured the buyers that even though they bought vehicles in pre-GST regime, their prices will be secured. If it works well, any change in prices will be taken care off.

They also added that the prices will fall down but also said they are working on the same. There are various tax rates in different states and final calculations are yet to be done. They would have calculated the final prices by now.

According to Toyota India, Fortuner SUV will see price cut by Rs. 2.1 Lakh due to lower GST. On the flip side, Innova multipurpose vehicle will go cheaper by Rs. 90000. They will pass on the benefit to the marketplace. The price will go up for Camry hybrid.

The prices of Hero scooters and bikes will also go down by 5% due to lower duty. On the other side, Honda will also slash prices with Activa scooter to go cheaper by Rs. 3400. However, super bikes above 350cc engine will go expensive with models from brands like Triumph, Royal Enfield, Ducati, and Harley-Davidson.

Leave a Reply

Your email address will not be published. Required fields are marked *