The major automotive manufacturers in India have decreased the prices on their models post the launch of the Goods and Services Tax (GST) which came into effect on 1 July. The move comes after the taxes rates on the vehicles post the launch of GST in which automakers such as Maruti Suzuki, BMW, Toyota Kirloskar Motor, Jaguar Land Rover announced price cuts on select models.
Maruti Suzuki, one of the largest car manufacturers in India decreased the price on most of its wheelers models on 1 July. Maruti Suzuki slashed the prices up to 3 percent on various models. Maruti's popular small car, the Alto also saw a price cut by the company. Other models such as WagonR, Swift, Baleno, Dzire, Ertiga (petrol), Ciaz (petrol), SUV Vitara Brezza, S-Cross prices were slashed by the company. The price of Alto has been decreased by Rs 2,300 to 5,400. The prices of WagonR, Swift, Baleno, Dzire were decreased by Rs 5,300 to Rs 8,300, Rs 6,700 to Rs 10,700, Rs 6,600 to Rs 13,100 and Rs 8,100 to Rs 15,100 respectively.
The Maruti Ertiga petrol saw a price cut of Rs 21,800 while the Ciaz petrol saw prices drop by Rs 23,400. Maruti's SUV, the Vitara Brezza too saw its price drop by Rs 10,400 and Rs 14,700. The adventurous S-cross crossover too saw its price dropping between Rs 17,700 to Rs 21,300.
BMW also cut prices on its various models such as BMW X1 and its 7 Series sedan. Base end version prices were cut by Rs 70,000 and top end sedans saw price cut up to Rs 1.8 lakh. The price of company's expensive hybrid, the BMW i8 is expected to witness an increase of Rs 4.8 lakh bring its price tag to Rs 2.28 crore.
Toyota Kirloskar Motor too cut prices on various models. Toyota's Fortuner is expected to be cheaper by up to 2.17 lakh, while the Innova Crysta and Corolla Altis are expected to come down by Rs 98,500 and Rs 92,500 respectively.
Oddly, Toyota increased the price tags of its hybrid variants similar to BMW. Its Camry and Prius models are expected to see a bump in prices by Rs 3.5 lakh and Rs 5.24 lakh in Bengaluru and Delhi respectively. The company also decreased the prices of Platinum Etios and Etios Liva by Rs 24,500 and Rs 10,500.
Luxury carmaker Jaguar Land Rover India slashed the prices of its various models by up to 7 percent. The price of Jaguar XE and XF has been cut by Rs 2.61 lakh. The Jaguar XJ and Discover Sport's prices were slashed by Rs 5 lakh and Rs 4 lakh respectively.
Mercedes-Benz and Audi had also announced to cut the prices after the GST. The company in a press release pointed out that these would only apply to its 'Made in India' portfolio of vehicles. "The price reduction of the entire ‘Made in India’ portfolio ranges from 2 percent to 9 percent depending on the tax structure and local body taxes of the state." The weighted average of this is a price reduction of 4% on transaction prices of customers.