New Delhi: Maruti Suzuki will cut car prices across its product portfolio to extend full benefits of the lowered goods and services tax ( GST) rates. India's largest carmaker would also offer additional price reductions on some models.
The price cuts, ranging from ₹46,000 on the MPV Ertiga to ₹129,000 on the small car S-Presso, include both the GST benefit and price incentives offered by the company to boost car sales.
Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki, said the company has cut prices on small cars over and above the net benefit of 8.5% accruing from the reduced GST to enable two-wheeler users upgrade to cars.
On the S-Presso, the automaker has extended 12.6-24% price benefit, on the Alto K10 from 10.6-20%, Celerio from 8.6-17%, and the WagonR from 8.7-14%. The entry-level Alto car will see up to ₹1.07 lakh price cut. Prices of SUVs like Fronx and Brezza have also been reduced by up to ₹1.12 lakh.
The revised prices will be rolled out from September 22 in line with the updated GST regulations, which coincides with the second leg of the festive season. The tax has been lowered to 18% for small cars less than 4 metres in length from 29-31% (GST and cess). Larger cars and SUVs will attract a special GST rate of 40%, compared to the current 43-50%.
"We strongly believe that sales of small cars have declined due to affordability issues," said Banerjee. "Now there are several tailwinds due to lower GST, income tax slab revisions announced in the budget earlier this year and lower interest rates."
The price cuts, ranging from ₹46,000 on the MPV Ertiga to ₹129,000 on the small car S-Presso, include both the GST benefit and price incentives offered by the company to boost car sales.
Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki, said the company has cut prices on small cars over and above the net benefit of 8.5% accruing from the reduced GST to enable two-wheeler users upgrade to cars.
On the S-Presso, the automaker has extended 12.6-24% price benefit, on the Alto K10 from 10.6-20%, Celerio from 8.6-17%, and the WagonR from 8.7-14%. The entry-level Alto car will see up to ₹1.07 lakh price cut. Prices of SUVs like Fronx and Brezza have also been reduced by up to ₹1.12 lakh.
The revised prices will be rolled out from September 22 in line with the updated GST regulations, which coincides with the second leg of the festive season. The tax has been lowered to 18% for small cars less than 4 metres in length from 29-31% (GST and cess). Larger cars and SUVs will attract a special GST rate of 40%, compared to the current 43-50%.
"We strongly believe that sales of small cars have declined due to affordability issues," said Banerjee. "Now there are several tailwinds due to lower GST, income tax slab revisions announced in the budget earlier this year and lower interest rates."
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