GST effect: Ford slashes prices of some models to pass on advantages of new tax rates

Auto manufacturer Ford India is giving discounts of up to Rs 30,000 on its compact SUV EcoSport, sedan Aspire and Figo hatchback, to pass on the advantages of new tax rates under GST, to be implemented in July.

The company is giving a discount on Eco Sport in the range of Rs 20,000 to Rs 30,000. The latest prices of the compact SUV are between Rs 7.18 lakh and Rs 10.76 lakh (ex-showroom Delhi).

On the other hand, Figo and Aspire are available on discounts in the range of Rs 10,000 to Rs 25,000 subject to the variant. While Figo is tagged between Rs 4.75 lakh and Rs 7.73 lakh, Aspire compact sedan is valued between Rs 5.44 lakh and Rs 8.28 lakh (all prices ex-showroom Delhi).

"We are happy to pass on (to customers) the expected benefits of GST ahead of its actual implementation," Ford India VP Sales Vinay Raina told PTI.

Last week, German luxury car manufacturer Audi had lowered the prices of its models in India by up to Rs 10 lakh applicable till June 30. The company sells a wide range of cars, starting from the A3 sedan to A8 premium sedan presently priced between Rs 30.5 lakh and Rs 1.15 crore.

Another German luxury car maker, BMW was also quoted as saying that it is offering "benefits up to 12 percent" on ex-showroom prices including GST benefits, depending on the model selected. further advantages that are being offered are, reduced rate of interest at 7.9 percent, complimentary service and maintenance for three years and one-year complimentary insurance.

Apart from them Mercedes-Benz has also proposed cutting down of prices of its vehicles made in India by up to Rs 7 lakh to deliver to the customers the benefits of new tax rate under GST expected in July.

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Mercedes Benz India produces nine models in India – CLA sedan, SUVs GLA, GLC, GLE and GLS, luxury sedans C-Class, E- Class, S -Class and Maybach S 500 – which are tagged between Rs 32 lakh and Rs 1.87 crore (ex-showroom, Delhi). The discount varies from Rs 1.4 lakh on the CLA sedan to Rs 7 lakh on Maybach S 500.

Large cars are anticipated at becoming cheaper because of lower tax incidence under GST as compared to the current tax structure. Under the GST structure, cars will attract the top tax rate of 28 per cent with further cess in the range of 1 to 15 per cent.

While smaller petrol cars with engines less than 1,200cc will be charged 1 per cent cess, those with a diesel engine of less than 1,500cc will attract 3 per cent cess. Larger cars with engine greater than 1,500 cc, SUVs longer than 4 meters and engine more than 1,500 cc will attract a cess of 15 per cent.