<p>Car dealers are offering huge discounts to maintain their sales momentum ahead of the rollout of GST on July 1, when prices are expected to fall by an average of 2-3%.<br /><br />They are going all out to sweeten their deals, with one brand claiming its cars are cheaper now than they would be after GST kicks in.<br /><br />The discounts range from Rs 5,000 for small cars to a whopping Rs 2.5 lakh for cars in the luxury segment. Auto experts say buyers of small cars could benefit the most by making their purchases now. <br /><br />Hyundai’s price cuts range from Rs 25,000 to Rs 2.5 lakh. Ford India is offering discounts of Rs 15,000 to Rs 30,000 on the Figo, Aspire and Ecosport. <br /><br />Maruti Suzuki, the country’s largest car maker, is offering discounts of Rs 5,000 to Rs 25,000 on its models.<br />“There is no clarity on how much prices will go down after GST. At the moment, we are offering higher discounts than what a customer will get post-July 1,” Ajay Singh, director, sales and marketing, Advaith Hyundai, told DH.<br />Auto experts and analysts expect prices to fall in the small car segment by 2-3%, despite a rise in the tax levels, because they get input credits under the new regime. <br /><br />The Alto, Celerio, Ignis, Swift, Wagon R (all Suzuki), Eon, Grand i10 (Hyundai), Bolt, Indica, Nano, Tiago, Tigor (Tata), Brio (Honda), Figo (Ford), Micra (Nissan), and the Kwid (Renault) are among the small cars in the market.<br /> <br />In the large car segment, experts believe on-road prices will come down by 6-7%. In the case of hybrid cars, they sound a note of caution.<br /><br />Under the GST regime, their prices are set to go up by 20%.<br /><br />“This is the right time to buy small cars. Consumers can wait to buy large cars post-GST,” Abdul Majeed, leader (automotive), PricewaterCoopers India, said. He believes dealers are offering discounts not just to beat the slump in the run-up to GST, but also to clear their inventories. “Our customers need not wait till July 1 as we are passing on the benefits with immediate effect,” a Ford official said.<br /><br />Toyota Kirloskar is among the companies not rushing in to offer discounts. It expects its prices to come down by 2% once the GST regime kicks in.<br /><br />“Only in the hybrid segment will prices go up,” said Shekar Viswanathan, vice-chairman, Toyota Kirloskar Motor.</p>
<p>Car dealers are offering huge discounts to maintain their sales momentum ahead of the rollout of GST on July 1, when prices are expected to fall by an average of 2-3%.<br /><br />They are going all out to sweeten their deals, with one brand claiming its cars are cheaper now than they would be after GST kicks in.<br /><br />The discounts range from Rs 5,000 for small cars to a whopping Rs 2.5 lakh for cars in the luxury segment. Auto experts say buyers of small cars could benefit the most by making their purchases now. <br /><br />Hyundai’s price cuts range from Rs 25,000 to Rs 2.5 lakh. Ford India is offering discounts of Rs 15,000 to Rs 30,000 on the Figo, Aspire and Ecosport. <br /><br />Maruti Suzuki, the country’s largest car maker, is offering discounts of Rs 5,000 to Rs 25,000 on its models.<br />“There is no clarity on how much prices will go down after GST. At the moment, we are offering higher discounts than what a customer will get post-July 1,” Ajay Singh, director, sales and marketing, Advaith Hyundai, told DH.<br />Auto experts and analysts expect prices to fall in the small car segment by 2-3%, despite a rise in the tax levels, because they get input credits under the new regime. <br /><br />The Alto, Celerio, Ignis, Swift, Wagon R (all Suzuki), Eon, Grand i10 (Hyundai), Bolt, Indica, Nano, Tiago, Tigor (Tata), Brio (Honda), Figo (Ford), Micra (Nissan), and the Kwid (Renault) are among the small cars in the market.<br /> <br />In the large car segment, experts believe on-road prices will come down by 6-7%. In the case of hybrid cars, they sound a note of caution.<br /><br />Under the GST regime, their prices are set to go up by 20%.<br /><br />“This is the right time to buy small cars. Consumers can wait to buy large cars post-GST,” Abdul Majeed, leader (automotive), PricewaterCoopers India, said. He believes dealers are offering discounts not just to beat the slump in the run-up to GST, but also to clear their inventories. “Our customers need not wait till July 1 as we are passing on the benefits with immediate effect,” a Ford official said.<br /><br />Toyota Kirloskar is among the companies not rushing in to offer discounts. It expects its prices to come down by 2% once the GST regime kicks in.<br /><br />“Only in the hybrid segment will prices go up,” said Shekar Viswanathan, vice-chairman, Toyota Kirloskar Motor.</p>