Tata Safari Storme too has been affected by the revised cess under GST; receives price hike of up to Rs. 86,000
Tata Motors has increased the pricing of the Hexa and Safari Storme in order to comply with the latest cess hike by GST Council. With this price revision, Tata Hexa has become dearer by Rs. 77,000 to Rs. 96,000, while the Tata Safari Storme has become expensive by Rs. 67,000 to Rs. 86,000. This price hike right ahead of the festive season is expected to affect the sales of these two models.
Under the new tax system, the Tata Hexa was initially priced between Rs. 10.95 lakh and Rs. 16.23 lakh (ex-showroom). But, after the cess has been hiked by the GST Council, the car is priced between Rs. 11.72 lakh and Rs. 17.19 lakh (ex-showroom).
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The Tata Safari Storme is available in four different variants and before the three-fold cess hike this SUV was priced between Rs. 9.75 lakh and Rs. 14.47 lakh (ex-showroom). Now after the cess hike, the SUV is priced between Rs. 10.42 lakh and Rs. 15.33 lakh (ex-showroom). Both the cars became cheaper when GST rolled out on 1st July 2017, but now the pricings are similar to the pre-GST era.
GST Council has increased the cess for three different car categories that are midsize cars, large cars and SUVs with length exceeding 4,000 mm and having ground clearance of 170 mm or above. The total tax incidence for these three categories are 43%, 48% and 50% respectively with variable cress amount over and above 28% GST.
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As the festive season is nearing and Indian auto market sees the maximum sales surge during festive season, every automaker was expecting to cash on the opportunity after several bumps in last one year. Tata Motors too wasn’t any different. However, with the latest cess hike that expectation is facing a tough challenge, specially for the midsize cars, luxury cars and SUVs.