Following tax cuts on cars by the government, manufacturers have started reducing prices. Experts within the industry predict that the prices of numerous vehicles, from the Maruti Suzuki Alto to the luxurious Mercedes-Benz S-Class, could decrease anywhere from ₹45,000 to ₹10 lakhs. These new rates will become effective on September 22, leading to a potential price drop of ₹45,000 to ₹1 lakh for smaller cars.
The most budget-friendly entry-level car in the industry, the Maruti Suzuki Alto, currently has a showroom price of ₹4.23 lakhs. Similarly, luxury car brands like Mercedes-Benz may reduce the prices of models like the A-Class and the high-end S-Class by ₹2 lakhs to ₹10 lakhs.
The GST Council has recently implemented a significant overhaul of the GST system, eliminating the 28% and 12% slabs, and approving the limitation of the slabs to 5% and 18%. Small cars are now included in the 18% slab, which previously had a 28% GST and a 1% cess. Therefore, small cars will experience a total tax reduction of 11%. These new prices will be in effect starting September 22, coinciding with the start of Navratri. SUVs and luxury cars will be subject to a 40% GST, whereas previously, these vehicles were taxed at a rate of 40% to 40%, including cess.
Audi India has stated that the implementation of GST rates on September 22 will likely lead to a decrease of 4% to 6% in their car prices. The finalized prices will be revealed soon. Furthermore, prices for the BMW Group India’s X1 to X7 models are anticipated to drop by ₹2 lakhs to ₹9 lakhs. Several companies, including Tata Motors, Mahindra & Mahindra, Toyota Kirloskar Motor, and Renault India, have already announced price cuts.