Hyundai, Tata, Mahindra announce cut in vehicle price

Days after the GST Council approved rate rationalisation and reform in the indirect tax system, leading car manufacturers including Hyundai, Tata Motors, Mahindra, Toyota and Renault, have announced reduction in prices of their vehicles and reiterated commitment to fully pass on the benefits of tax cut to customers.

Hyundai announced on Sunday that it will cut car prices by up to Rs 2.4 lakh effective from September 22, the date revised GST rates are slated to come into effect.

“We sincerely appreciate the progressive and far-sighted move by the Government of India to reduce GST on passenger vehicles,” Unsoo Kim, Managing Director, Hyundai Motor India, said.

“This reform is not only a boost to the automotive industry but also a strong step towards empowering millions of customers by making personal mobility more affordable and accessible,” Kim added.

Hyundai Tucson model, which is priced at around Rs 30 lakh, will become cheaper by Rs 2.4 lakh. The price of Hyundai Venue model will go down by Rs 1.23 lakh. Nios will become cheaper by Rs 73,808 while price of i20 will be cut by Rs 98,053.

Tata Motors announced upto Rs 4.65 lakh cut in prices of commercial vehicles. The price of Tata Motors’ heavy commercial vehicles will be lowered in the range of Rs 2.8 lakh to Rs 4.65 lakh. Prices of buses and vans will be reduced in the range of Rs 1.20 lakh to Rs 4.35 lakh, while the price of Tata Motors’ small commercial vehicles will be reduced in the range of Rs 30,000 to Rs 1.1 lakh.

“The reduction in GST on commercial vehicles to 18% is a bold and timely step towards revitalising India’s transport and logistics backbone,” said Girish Wagh, Executive Director, Tata Motors.

He said the company has decided to extend the “full benefit of GST reduction on all our commercial vehicles to customers across the country.”

On passenger cars, Tata Motors has announced upto Rs 1.55 lakh cut in prices. Tata Tiago will become cheaper by Rs 75,000, while Nexon price of Nexon will be cut by Rs 1.55. Tata Punch will become cheaper by Rs 85,000.

The GST Council, the top decision making body of the Goods and Services Tax system, in its meeting held on September 3 decided to slash GST on small cars, buses and other commercial vehicles like trucks and delivery vans, to 18% from 28%. Small car is defined as a vehicle under four metres in length with engines up to 1,200cc (petrol) or 1,500cc (diesel).

On larger cars a flat GST of 40% with no cess will apply from the current 28% plus cess.Even at 40%, the absence of cess will lower the effective tax on larger cars.

The announcement regarding a cut in the price of Hyundai Tucson, which falls under the larger car category, is a reflection of the extent of tax savings on larger cars. Mahindra & Mahindra has announced upto Rs 1.56 lakh cut in the prices of its SUV models. Luxury carmaker BMW has announced upto Rs 8.9 lakh reduction in the prices of its various models.

Other companies have also announced significant reduction in prices of large cars. Toyota Fortuner will get cheaper by up to Rs 3.49 lakh, while the price of Innova Crysta and Innova Hycross will drop by Rs 1.80 lakh and Rs 1.15 lakh, respectively.

Renault India has announced upto Rs 96,000 reduction in price of its vehicles. The starting price of Renault Kwid will come down to Rs 4.29 lakh from Rs 4.69 lakh. The price of Kiger and Triber models will start from Rs 5.76 lakh.

“Passing on the full GST 2.0 benefit is a reflection of our unwavering commitment to our customers. We believe this timely initiative will not only make our cars more accessible but also energise demand during the festive season,” said Venkatram Mamillapalle, Managing Director, Renault India.

While the revised price will be applicable on deliveries made on or after September 22, customers can start booking at the new prices immediately across all dealerships nationwide, Renault said in a statement.