Hyundai Motor India Ltd. (HMIL) has announced an increase in prices of its various models by up to Rs 84,867 following the revision in the Goods and Service Tax (GST) Cess by the GST Council.
The Korean company in a statement said the price hike will be in the range of 2 to 5 percent and is effective from September 11, 2017. The models whose prices have been increased are the i20, Verna, Creta, Elantra and the Tucson SUV.
However, prices of the Hyundai Grand i10 and the new Xcent will not be affected by the recent change in GST Cess. The Hyundai i20 (only the 1.4-litre petrol AT) will see a hike of Rs 12,547, rest of the i20 variants' prices have not been increased.
Hyundai's latest launch, the Verna sedan received a price hike of Rs 29,090. Automakers such as Toyota Kirloskar Motor, Honda Cars India, Jeep India have already announced a hike in prices of various models.
Hyundai Car Prices After-GST
|Elite i20 (1.4-litre Petrol AT Only)||Rs 12,547|
|Verna||Upto Rs 20,090|
|Creta||Rs 20,900 to Rs 55,375|
|Elantra||Rs 50,312 to 75,991|
|Tucson||Rs 64,828 to Rs 84,867|
Under the GST tax structure, cars now attract the highest rate of 28 percent and cess ranging from 1 to 22 percent depending on body styles.
Most of Hyundai's product lineup in India cater to the mass market segment and hence a price increase just before the festive season might affect the auto industry's sales. That said, the anomaly in the GST Cess had to be corrected, and the government has levied GST Cess slabs based on body styles rather than a blanket tax rate.