Volkswagen has increased the pricing of Vento and Tiguan by up to Rs. 9,000 and Rs. 1.04 lakh respectively
Volkswagen has increased the pricing of its cars like Vento sedan and Tiguan SUV in order to comply with the latest GST cess hike. The German premium car manufacturer has hiked the price of Vento sedan between Rs. 4,000 and Rs. 9,000. The Tiguan SUV has received a price hike ranging between Rs, 93,000 and Rs. 1.04 lakh. However, the Volkswagen Polo hatchback’s pricing remains unchanged in the latest price revision.
Volkswagen is not the first automaker to increase pricing of the cars during festive season due to the three-fold cess hike by GST Council. As we reported, Toyota, Hyundai, Tata Motors, Honda, Jaguar and Land Rover have also increased pricing of their cars to comply with the higher cess.
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Under the revised cess structure by GST Council, midsize cars, large cars and SUVs along with luxury cars have been affected. The midsize cars are now slapped with 43% total tax incidence that comprises 15% cess over and above 28% GST. The large cars attract 48% of total tax incidence including 20% cess over and above 28% GST. SUVs with length exceeding 4,000 mm and having ground clearance of 170 mm draw 50% of total tax incidence including 22% cess over and above the 28% GST.
With this latest price hike during festive season, Volkswagen is likely to face a decline in the sales number for Vento and Tiguan. Meanwhile, the German automaker is gearing up to launch the new Passat in India on 10th October. Production of this sedan has already begun at the brand’s Aurangabad plant.
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Apart from the new Passat sedan, Volkswagen is also expected to launch the new Polo that was unveiled in Germany few weeks ago. The new Polo comes with sharp styling compared to the current model and it dons host of features that enhance the premiumness of the hatchback.