Deals galore on cars before GST

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%.

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.

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.

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.

Maruti Suzuki, the country’s largest car maker, is offering discounts of Rs 5,000 to Rs 25,000 on its models.
“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.
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.

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.
 
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.

Under the GST regime, their prices are set to go up by 20%.

“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.

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.

“Only in the hybrid segment will prices go up,” said Shekar Viswanathan, vice-chairman, Toyota Kirloskar Motor.