GST impact: Automobile enthusiasts cheer as auto makers cut down prices

The unwinding of the Goods and Services Tax (GST) regime brought a cheer to the automobile enthusiasts with most of the automobile industry majors passing on the GST benefits to the customers in the form of price cut.

Most of the vehicles are kept in the 28 per cent tax slab under GST, with an additional cess of one per cent, 3 per cent or 15 per cent depending on the category of the vehicles.        

Amongst the first companies to pass on the effect of GST rates to its customers, Tata Motors on Wednesday, July 6, announced a downward revision of prices for its passenger vehicles. The company cut down the prices up to 12 per cent between Rs 3,300 and Rs 2.17 lakh in accordance with the model and variant of the vehicles.  

While among other companies slashing their prices was Maruti Suzuki Limited, that cut down the prices of most of its models by up to 3 per cent with immediate effect with diesel vehicles as an exception.   

Mahindra and Mahindra Limited cut down the prices of its utility vehicles by 6.9 per cent at an average, whereas the prices of small cars were slashed by 1.4 per cent at an average.

Honda Cars India slashed its prices up to Rs 1.31 lakh and Ford India cut down its prices by up to 4.5 per cent. Further the luxury car makers also reduced their prices, opening up to a larger customer base. JLR and BMW cut down its prices in the range of Rs 2,300 to over Rs 2 lakh each of different models and variants.         
   
However, on July 6, the BSE auto index was quoting 23873.66 level, up by 0.43 per cent, trading flat in intraday trade, in line with the BSE Sensex quoting 31,401.68 levels, up by 0.50 per cent.