GST rates: Car and bike makers announce price cuts of up to Rs3 lakh
Car and two-wheeler makers, including Honda, Ford, Hero MotoCorp, Yamaha and Bajaj have announced price cuts following introduction of GST rates
New Delhi: Passing on to customers the benefits under the new Goods and Services Tax (GST) regime, car and two-wheeler makers on Monday announced price cuts ranging from Rs350 in case of bikes to Rs3 lakh on Ford Endeavour.
Honda Cars India, Ford India Pvt. Ltd, as well as two-wheeler makers TVS Motor Co. Ltd, Honda Motorcycle and Scooter India Ltd (HMSI) and Suzuki Motorcycle India Pvt. Ltd, all announced price cuts following implementation on GST rates on cars and bikes.
With GST rate on cars reducing the overall tax incidence on many of its models, Honda Cars India cut prices by up to Rs1.31 lakh with immediate effect to pass on the benefit to consumers. The company reduced price of its hatchback Brio by up to Rs12,279 and that of compact sedan Amaze by up to Rs14,825. It has slashed price of premium hatchback Jazz by up to Rs10,031 and that of its recently launched model WR-V by up to Rs10,064. Likewise, prices of the Honda City sedan has been reduced in the range of Rs16,510 and Rs 28,005. Honda BR-V prices will come down by up to Rs30,387, while Honda CR-V will get cheaper by up to Rs131,663. Honda, however, is yet to decide on the revised pricing of Accord Hybrid, which is set to become costlier with GST rate on hybrid vehicles going up.
The revised prices are for ex-showroom Delhi and will vary from state to state.
Ford India has also reduced vehicle prices by up to 4.5% with immediate effect. While the reduction in prices will vary from state to state, the highest cut will be in Mumbai with the company’s flagship Endeavour becoming cheaper by up to Rs3 lakh. In Mumbai, the prices will go down in the range of Rs28,000 on Figo to Rs3 lakh on Endeavour. “We will pass on the benefits in the range of up to 4.5% across the range,” said a Ford India spokesperson. In Delhi, Ford Figo will be cheaper by Rs2,000 and Ford Ecosport by Rs 8,000. Ford Endeavour prices has been reduced by up to Rs1.5 lakh.
The company, however, did not share details about the revised pricing of the iconic Ford Mustang. It is expected to go up.
In the two-wheeler segment, TVS Motor has reduced prices of its models by up to Rs4,150.
“The price reduction is in the range of Rs350 to Rs1,500 in the commuter segment. In the premium segment products, the prices are reduced up to Rs4,150 depending on each state,” TVS said in a statement.
India’s second-largest two wheeler maker HMSI said it has slashed prices of its products by up to Rs5,500 depending on model and state. The reduced prices effective from 1 July, HMSI senior vice-president, sales and marketing, Yadvinder Singh Guleria said.
Suzuki Motorcycle India and Yamaha have also reduced prices passing on GST benefit to customers. Market leader Hero MotoCorp has also cut prices by up to Rs1,800 banking on the GST launch.
Various automakers such as Maruti Suzuki, Toyota, Jaguar Land Rover, BMW, Mercedes-Benz and Audi have already reduced prices post GST implementation.
- BSNL aims to sell 10,000 satellite phones by March 2019
- Infosys says increased visa application rejections could result in delays, higher project costs
- Change M&A norms to calculate spectrum dues: Trai
- Cracking India’s bankruptcy code
- RBI’s registry will help solve problem of credit shortage: iSpirt’s Sharad Sharma
Editor's Picks »
- Chief technology officers of Reliance Jio, Bharti Airtel quit
- IIT-Bombay generates ₹17.99 crore revenue in 2017-18, highest among IITs
- EPFO payroll data shows 4.4 million jobs created in 9 months till May
- Dubai recipe for economic success looks stale as markets slump
- CWC meet: Rahul Gandhi says BJP attacks institutions, Dalits, and poor
- What ABB India’s performance in June quarter says about capex growth
- Bajaj Finance does well in Q1 even as competition hots up
- Kotak Mahindra Bank: The perils of being priced to perfection
- Higher cane price crushes hopes of sugar mills
- Market optimism before 2019 general election: History may not repeat itself