GST Impact on Cars – Price Change in Maruti, Hyundai, TATA and Mahindra Cars

GST Impact on Automobile Industry

After Very Long Wait GST aka Goods and Service Tax has Implemented on 1st July 2017 in India. It Believes that GST will Reform Financial Structure of Indian Economy. With Implementing GST we can see some Big Changes in All the Market.

After GST Implementation Prices in Automobile Industries has seen Decrease in Majority Car Models especially in Small Segment Cars like Alto, Swift, i10 and i20, etc. While Price of Some Luxuries Cards like Ciaz, Ertiga seems to be More Costlier than Before GST. A policy of ‘one country, one tax’ will affect most industries which have various and some taxation structures.

Let’s take a Look at GST Impact on Different Card Types and Companies.

CATEGORY ENGINE  Pre-GST Post-GST PRICE DROP
Under 4-metres Length Under 1.2-litre Petrol 31.5% 29% 2.5%
Under 4-metres Length Under 1.5-litre Diesel 33.25% 31% 2.25%
Under 4-metres Length Above 1.2-litre Petrol or 1.5-litre Diesel 44.7% 43% 1.7%
Above 4-metres Length Above 1.2-litre Petrol or 1.5-litre Diesel 51.6% 43% 8.6%
SUVs   55% 43% 12%
Hybrids   30.3% 43% – 13.3%
Electric Vehicles    20.5% 12% 7.5%

GST Impact on Cars

GST Impact on Cars

(Image Credit – MoneyControl)

As You can See Small and Middle Segment Cars Get Cheaper and Hybrid cars became Costlier.

GST Impact On Maruti Cars

In Maruti Suzuki Brand, Majority of Car Prize Drop Down after Implementation of GST.

Pre-GST prices of the Maruti Suzuki Alto 800: Rs 2.51 lakh to Rs 3.75 lakh
Post-GST prices of the Maruti Suzuki Alto 800: Rs 2.46 lakh to Rs 3.71 lakh

Pre-GST prices of the Maruti Suzuki Ignis: Rs 4.58 lakh to Rs 7.81 lakh
Post-GST prices of the Maruti Suzuki Ignis: Rs 4.51 lakh to Rs 7.69 lakh

Pre-GST prices of the Maruti Suzuki Vitara Brezza: Rs 7.26 lakh to Rs 9.66 lakh
Post-GST prices of the Maruti Suzuki Vitara Brezza: Rs 7.22 lakh to Rs 9 lakh

Pre-GST prices of the Maruti Suzuki Ciaz: Rs 7.73 lakh to Rs 10.52 lakh
Post-GST prices of the Maruti Suzuki Ciaz: Rs 7.45 lakh to Rs 10.24 lakh

GST Impact On TATA Cars

Like Maruti, TATA also has to Decrease the Price of their Small segment Cars like Tiago, Indica, Tigor, etc.

Pre-GST prices of the Tata Safari Storme: Rs 10.64 lakh to Rs 15.63 lakh, ex-showroom, Delhi
Post-GST prices of the Tata Safari Storme: Rs 9.83 lakh to Rs 14.81 lakh, ex-showroom, Delhi

Pre-GST prices of the Tata Hexa: Rs 11.98 lakh to Rs 17.67 lakh
Post-GST price of the Tata Hexa: Rs 10.48 lakh to Rs 16.15 lakh

Pre-GST prices of the Tata Tiago: Rs 3.31 lakh to Rs 5.85 lakh
Post-GST prices of the Tata Tiago: Rs 3.21 lakh to 5.75 lakh

Pre-GST prices of the Tata Tigor: Rs 4.70 lakh to Rs 7.09 lakh
Post-GST prices of the Tata Tigor: Rs 4.59 lakh to Rs 6.98 lakh

GST Impact on Mahindra Cars

Mahindra is also giving good discounts on most of its vehicles. The prices are indicative and may have a slight variation.

Pre-GST prices of the Mahindra Scorpio: Rs 9.41 lakh to Rs 14.61 lakh
Post-GST prices of the Mahindra Scorpio: Rs 8.89 lakh to Rs 14.11 lakh

Pre-GST prices of the Mahindra KUV100: Rs 4.59 lakh to Rs 6.93 lakh
Post-GST prices of the Mahindra KUV100: Rs 4.49 lakh to Rs 6.81 lakh

Pre- GST prices of the Mahindra Thar: Rs 6.27 lakh to Rs 8.99 lakh
Post-GST prices of the Mahindra Thar: Rs 6.15 lakh to Rs 8.84 lakh

After Implementation of GST, It Seems that the Automobile Industry will get Good Sales and Market because of Less Taxation.