The new Goods and Service Tax (GST) has finally been implemented and a lot of sectors including the Automotive industry has brought about a major change with prices slashing across most car and bike segments.
As per the new GST norms cars across different segments and body styles have seen a tax reduction between 1.7 percent for all vehicles which are 4 meters or less and 12 percent all SUVs larger than 4-meters. Hybrid cars have seen an increase in taxes, with the new tax slab being 43 per cent, as against the previous 30.3 per cent
The prices of entry level cars like Tata Nano have been slashed by 12 percent. There are expectations of price cuts around the Tata Safari Storme and Hexa models as well. Tata's Tiago and Tigor have also become cheaper in the process of GST implementation.
Cities like Mumbai and Bengaluru with higher pre-GST tax slabs have seen a higher price reduction overall.
However, June 2017 has not been a profitable month for Tata after domestic sales went down by 5 percent in year-on-year growth. The company's luxury arm - Jaguar Land Rover has already passed on the GST benefits across its models.
Published Date: Jul 05, 2017 05:30 pm | Updated Date: Jul 05, 2017 05:30 pm