Honda has increased its car prices in India between Rs. 7,003 and Rs. 89,069 in response to GST cess hike
Honda Cars India has increased the pricing of its cars in response to the latest GST cess hike. The Japanese automaker has hiked the pricing of its models like City, BR-V and CR-V. The price hike ranges between Rs. 7,003 and Rs. 89,069. This revised pricing is effective from 11th September, 2017.
The Honda City sedan has become pricier by Rs. 7,003 – Rs. 18,791, depending on variants. The BR-V’s pricing has been increased by Rs. 12,490 – Rs. 18,242, while the CR-V pricing has been hiked by Rs. 75,304 – Rs. 89,069. The price hike decision comes right ahead of the festive season, the period of the year when Indian auto industry experiences huge sales surge.
The move comes right after Toyota announced price hike of its models like Fortuner, Innova Crysta, Corolla Altis and Etios Platinum in response to the latest cess hike by GST Council. With the price revision, the automakers are expecting their sales to be impacted during upcoming festive season. However, pricing of the smaller car prices and hybrid models remains unchanged. With Honda and Toyota already increased the pricing of their selective models, other brand too are expected to follow them.
Under the revised tax structure, mid-size cars draw 45% of total tax incidence comprising 17% cess over and above the 28% GST. The large cars attract 48% total tax incidence that includes 20% cess over and above 28% GST. The SUVs with length measuring more than 4,000 mm and ground clearance of 170 mm and above are taxed with 50% of total tax incidence, comprising 22% cess over and above the 28% GST.
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The small petrol and diesel powered cars, hybrid and electric models and vehicles with up to 13 passenger carrying capacity have been left out of the latest three-fold cess hike. As it appears, the luxury cars, large cars and SUVs are the most affected vehicles under the revised tax structure by GST Council.