Renault Kwid is about to become pricier by around Rs. 8,000 under the new tax structure
Renault Kwid is currently one of the most popular products in the small car category of Indian auto market. With the Goods and Services Tax (GST) to be implemented from 1st July, the Kwid is about to become little pricier than its current pricing. The pricing of this small and muscular looking hatchback is likely to go up by around Rs. 8,000.
Currently, Renault Kwid is priced between Rs. 2.80 lakh and Rs. 4.46 lakh (ex-showroom, New Delhi). This includes excise, infra cess, VAT etc. In Delhi, octroi is not levied on the car and the total tax amount slappe don the car is around 26%. But, under the new tax structure of GST, Renault Kwid will draw 29% total tax amount that is 3% higher than the current tax amount. This includes the 28% GST plus 1% cess.
Also read: Renault Kwid 1.0L AMT – All You Need to Know
With this, the Renault Kwid hatchback is expected to become little pricier. For instance, the base trim of the car currently comes priced at Rs. 2.80 lakh (ex-showroom, New Delhi) and it will be priced around Rs. 2.88 lakh under the new tax structure.
Smaller petrol cars with engine capacity of less than 1,200 cc will be positioned at 28% GST slab and they will attract 1% cess taking the total incidence to 29%. On the diesel front, the small cars with engine capacity of less than 1,500 cc will draw 3% cess above 28% GST. So, it is clear that small cars will become pricier compared to the larger vehicles under the new tax structure.
Also read: Renault Kwid Climber – All You Need to Know
Along with the unique SUVish design, a tough look, value for money, interesting features, efficient powertrain and above all with a very competitive pricing, Kwid has become pretty successful in the country. It holds a major chunk in the mass market car pie. Now it is to be seen, how the buyers react to the new pricing of this car. However, with slightly increased price it is very unlikely to see any reduction in popularity.
Renault Kwid Climber Gallery