Car makers liquidating inventories before GST roll-out

The car makers in India are offering discounts to their customers so as to clear inventories before the roll-out of GST. With only two days to go before the GST kicks in, companies including Hyundai, Mahindra & Mahindra and Maruti are offering attractive discounts.

Hyundai is offering discounts up to Rs 250,000 on its SUV Santa Fe, followed by Rs 80,000-90,000 on its sedan Verna and a discount of Rs 25,000 on Xcent. The company is also offering heavy discounts on small cars, with discounts of Rs 40,000 and Rs 62,000-73,000 on Grand i10 and EON, respectively.

Mahindra & Mahindra is also offering discounts on small cars. The discounts are in the range of Rs 20,000-35,000 on WagonR, Swift and Alto. The company is also offering discounts ranging from Rs 60,000-90,000 on Scorpio and XUV 500.

From July 1st, all cars will attract GST of 28 per cent and an additional cess of 3 to 15 per cent would be levied depending upon the categorisation of car as small, luxury/large and SUV.