FCA has increased pricing of the Jeep and Fiat products to comply with the latest three-fold cess hike
While the festive season brings price reductive offers and discounts, this time the trend is running in reverse gear. After Honda, Toyota and Hyundai FCA too has taken the same path to increase the pricing of its products. The automobile group has hiked pricing of the Jeep SUVs and Fiat cars in order to comply with the latest three-fold cess hike by GST Council.
In the revised price list, Jeep Compass has become prier by Rs. 21,000 to Rs. 72,000 depending on the variants. Also, the Jeep Wrangler and Grand Cherokee too have become dearer by significant margin. The Wrangler and Grand Cherokee have become pricier by Rs. 2.75 lakh to Rs. 6.40 lakh. No wonder, the price hike is going to impact the sales of the Jeep Compass that grabbed everyone’s attention in the country within short span after launch.
The Jeep Compass received more than 10,000 bookings between 19th June and 1st September. It was launched in the domestic market as the most affordable Jeep vehicle in the country with an aggressive starting price of Rs. 14.95 lakh (ex-showroom, New Delhi). With the price hike the top variants will be very much affected.
Speaking about the Fiat cars like Linea, Punto, Avventura, they have become pricier by Rs. 9,000 to Rs. 14,000 to comply with the cess hike. While Fiat’s sales are already not impressive, the price hike will surely affect the retailing further.
The GST Council imposed 17%, 20% and 22% cess on the midsize, large cars and SUVs respectively. With this, the SUVs with length exceeding 4,000 mm and having ground clearance of 170 mm or above are slapped with 50% total tax incidence comprising 22% cess over and above 28% GST. The midsize and large cars are taxed with 43% and 48% total tax incidence respectively.