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GST Effect: Mahindra, Maruti Suzuki And Hyundai Offer Huge Discounts
Mahindra, Maruti Suzuki and Hyundai have started offering huge discounts on some of their models as an effect of the GST bill’s implementation
The Goods and Service Tax (GST) bill has brought the prices of some cars down, and here we have the best-selling four-wheeler manufacturers of India giving huge discounts on their cars.
Implementation of the GST bill in India seems to be stirring up the market. Some sectors of the market, like the hotel and hospitality industry, are opposing some of its provisions and some sectors are happy with the way it affects them.
Mahindra & Mahindra is offering huge discounts on the XUV 500 with the W4 variant getting a discount of INR 49,000, the W6 and W8 with a discount of INR 73,000 and the W10 with a discount of INR 84,000.
The Mahindra KUV 100 too receives huge discounts, with the K2 and K4 diesel variants at INR 34,000, K4 and K6 petrol variants at INR 34,600 and the top spec K8 at INR 43,000.
Maruti Suzuki, the country's largest auto manufacturer, is offering a discount of Rs 3,400 on the Ignis. The second largest car manufacturer Hyundai, on the other hand, is not offering a discount but would be refunding the amount to the customer after the exact GST rates are given.
The automotive industry is affected greatly by the GST bill but seems content with the overall tax slabs given to them. Smaller cars would see a price increase of up to Rs 3,000 while big SUVs and MUVs are expected to get cheaper around INR 60,000.
As a result of the reduction in tax slabs, the cars get cheaper, and the benefit is passed down to the customer.
According to the GST bill, a standard peak rate of 28 percent has been implemented across all passenger vehicles. Also, the council has imposed a cess of one per cent on small petrol cars less than 1,200cc, three per cent cess on small diesel cars less than 1,500cc and 15 per cent cess on larger SUVs and luxury vehicles.
This makes the situation a little rosy for companies relying on bigger SUVs, such as Mahindra, Toyota, etc. and also for luxury carmakers such as Mercedes-Benz, Audi, etc.
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