Auto majors Tata Motors and Renault India on Wednesday slashed prices of passenger vehicles by up to Rs 2.17 lakh, passing on GST benefits to customers.
Tata Motors cut passenger vehicle prices between Rs 3,300 and Rs 2.17 lakh while Renault's price reduction ranges from Rs 5,200 to Rs 1.04 lakh.
Under the GST regime, passenger vehicles now attract a top rate of 28 per cent with a cess in the range of 1 to 15 per cent but the total tax incidence on a majority of vehicles has come down, except for hybrids segment.
"We are offering a price reduction of up to 12 per cent ranging between Rs 3,300 and Rs 2,17,000, depending on the model and variant," Tata Motors President, Passenger VehiclesBusiness Unit, Mayank Pareek said in a statement.
The Mumbai-based company has cut prices of its SUV Hexa ranging between Rs 1.04 lakh and Rs 2.17 lakh, hatchback Tiago by up to Rs 52,000 and compact sedan Tigor by up to Rs 60,000.
Welcoming the implementation of the Goods and Services tax (GST), Pareek said: "This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry."
Renault has also cut price of its hatchback Kwid Climber AMT between Rs 5,200 and Rs 29,500, SUV Duster RXZ AWD between Rs 30,400 and Rs 1,04,700 and that of Lodgy Stepway RXZbetween Rs 25,700 and Rs 88,600.
"Reflecting our customer-first approach, we have decided to pass on GST benefits to our customers, further enhancing the value proposition of our products," Renault IndiaOperations Country CEO and Managing Director Sumit Sawhney said.
The GST rollout is one of the biggest achievements of the government, facilitating a one nation, one tax system, aimed at fostering a congenial business environment, he added. "While there may be a short-term disruption as the whole system adapts to this economic transformation, but in the long term it will be very positive for the economy and corporateIndia," Sawhney said.
Mahindra and Mahindra announced reduction in prices of its utility vehicles and SUVs by up to 6.9 per cent on an average. Similarly, the company reduced prices of small commercial vehicles.
Companies including Honda Cars India, Ford, Maruti Suzuki, Toyota Jaguar Land Rover, BMW, Mercedes-Benz and Audi have already reduced prices to pass on GST benefits.
Even two-wheeler makers like TVS Motor Company, Honda Motorcycle & Scooter India, Hero MotoCorp, Bajaj Auto, Royal Enfield, Yamaha and Suzuki Motorcycle have cut prices.