Mahindra & Mahindra Lowers Vehicle Prices by Up to Rs 1.56 lakh, Toyota by Up to Rs 3.49 lakh
Major Savings on New Car Models as Automakers Pass on GST 2.0 Benefits
In a move that is expected to boost the automobile industry ahead of the festive season, several car manufacturers in India have announced they will fully pass on the benefits of the recently introduced GST 2.0 framework to their customers.
Mahindra & Mahindra Ltd (M&M) has led the charge, announcing that it will pass on the GST savings across its ICE SUV portfolio. The flagship XUV700 offers savings of up to Rs 1.43 lakh, while the XUV3XO Petrol and Diesel models see cuts of Rs 1.40 lakh and Rs 1.56 lakh respectively.
Similarly, Toyota Kirloskar Motor (TKM) has also committed to passing on the GST benefits to its customers, with savings ranging from Rs 48,700 to Rs 3.49 lakh across its range of vehicles.
The GST rate for electric vehicles remains unchanged at 5 per cent, but there are significant changes for internal combustion engine (ICE) cars. All ICE cars now fall under either the 18 per cent or 40 per cent slab, with mid-size, larger, and luxury models attracting the higher 40 per cent rate. This is a departure from the previous system, where ICE vehicles were subject to 28 per cent GST plus an additional compensation cess ranging between 1 per cent and 22 per cent depending on size and engine capacity.
Several other car manufacturers have followed suit, with Renault announcing price cuts across its range. The Renault Kiger, Kwid, Triber, and Scorpio-N have all seen reductions, with savings ranging from Rs 96,395 to Rs 1.45 lakh. Maruti Suzuki's Hyryder and Toyota's Glanza have also seen price reductions of up to Rs 65,400 and Rs 85,300 respectively.
Even the much-anticipated Scorpio-N offers savings of up to Rs 1.45 lakh, while the iconic Thar sees savings of up to Rs 1.33 lakh. The Bolero and Bolero Neo models have also been made cheaper by up to Rs 1.27 lakh.
Hydrogen fuel cell vehicles (FCEVs) have also seen a reduction in GST, with the rate dropping from 12 per cent to 5 per cent.
Varinder Wadhwa, Vice President of Sales-Service-Used Car Business and Profit Enhancement at M&M, expressed gratitude towards the government of India for the GST reform and expected it to provide strong momentum and further accelerate demand ahead of the festive season.
With these significant savings on offer, it seems that the automobile industry is gearing up for a busy festive season.
