As GST sets off, vehicle makers cut prices

Many two-wheeler and car manufacturers have slashed prices, prompted by lower tax rates under GST, which took effect on July 1.

More companies are set to follow suit in the coming days.

Toyota Kirloskar Motor has reduced the prices of its models by up to 13 per cent. “With the rollout of GST, the approximate price decrease in Bengaluru for Innova Crysta will be up to ₹98,500, and All New Fortuner up to ₹2,17,000.

“All New Corolla Altis will witness a price dip of up to ₹92,500,” said N Raja, Director & Senior Vice-President, Marketing and Sales, Toyota Kirloskar.

Platinum Etios prices are coming down by up to ₹24,500 and Etios Liva by up to ₹10,500. However, the prices of hybrid variants Toyota Camry and Toyota Prius will increase by over ₹3.5 lakh in Bengaluru, going up to ₹5.24 lakh in New Delhi as per applicable taxes under the GST framework.

Honda Cars India has decreased the prices of its models in the range of ₹7,980 to ₹1,31,663.

Its hatchback Brio’s prices will be reduced by ₹7,980-12,279, while Amaze prices have been reduced by up to ₹14,825.

Honda has also slashed the prices of Jazz and City by up to ₹10,031 and ₹28,005 respectively. WR-V’s price will be lower by ₹10,064.

Ford has indicated that the prices of its models will be reduced up to 4.5 per cent. Hatchback Figo’s prices will be slashed by ₹2,000, while SUV EcoSport’s prices will be lower by ₹8,000.

Two-wheeler major TVS Motor Company has announced a price reduction of up to ₹4,150. “The price reduction is in the range of ₹350 to ₹1,500 in the commuter segment. In the premium segment products, the prices are reduced by up to ₹4,150, depending on each State,” the company said.

In the case of Bajaj, the prices of KTM bikes will see a reduction in the range of ₹2,000-3,000. However, higher CC bikes, say 400cc, may see a price increase due to additional cess.

Also, the prices of Discover and Pulsar models will come down by at least ₹2,000.

Honda Motorcycle & Scooter India said it will be passing on the GST benefits to its buyers and the savings for the customer will be up to ₹5,500 depending on the model and the State of purchase.

Two days ago, Maruti and Hero had announced price reductions of ₹2,300-21,300 and ₹400-4,000, respectively.

Meanwhile, government registration authorities are waiting for updates on the rates. Also, some insurers are in the process of updating their rates in line with GST.

Therefore, it is learnt, some dealers couldn’t complete the vehicle registration process.

“Full clarity on the reduction in rates and final prices of the vehicles will emerge in the next few days,” said a dealer of a leading two-wheeler brand.

(With inputs from Ronendra Singh in New Delhi)