BMW 3 Series Sedan price will likely be reduced by upto Rs. 45,000 due to the benefit it will attract on the proposed GST rates
Luxury car buyers are certainly benefitted by the soon-arriving GST tax structure as the vehicles are getting cheaper than in current state. In the wake of GST (Goods and Service Tax) coming into effect from July 1 onwards, automakers could be feeling that they might face a slowdown in sales in the whole of June and therefore some of the big guns in the business are passing on the eventual benefit right on to the consumers with immediate effect and on select stock of cars.
The new sales tax regime attracts 28 percent GST in addition to a maximum cess level of 15 percent. Summing them up, people would end up paying 43 percent which is around 12 percent down on the current scenario where the effective tax on ex-showroom prices lies between 52 and 55 percent.
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BMW India has announced that it will pass on the benefit as well as additionally support the customers by a price cut down of up to 12 percent on select models. The important things to be noted are reduced rate of interest of 7.90 percent, complimentary service and maintenance for three years, complimentary insurance for one year and assured buyback up to four years.
The price decrease would be up to 12 percent based on the model and the place of buy as the offers will be valid for limited period or until stocks run out. In its factory at Chennai, the Indian arm of BMW makes the 1 Series luxury hatchback; 3 Series, 5 Series and 7 Series luxury sedans; luxury SUVs like the X1, X3, and X5 along with the 3 Series GT.
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The BMW i8, 6 Series Gran Coupe, M6 Gran Coupe, M4 Gran Coupe, X6, X5 M and X6 M, M3, M5 and Z4 roadster are brought into the country through CBU route. The entry-level BMW 3 Series sedan will likely attract a price cut of around Rs. 45,000 (ex-showroom, New Delhi) with the proposed charges and benefits involving the GST.