Volkswagen is offering price reduction on its cars across the country ranging up to 12 percent
German auto giant Volkswagen has joined the bandwagon of automakers in the country to pass on the benefit of GST to the customers. The company is offering price cut up to 12% on its cars with the premium SUV like Tiguan drawing the biggest reduction. This car has become cheaper by up to Rs. 3.30 lakh after GST rolled out on 1st July 2017.
Under the new tax system, big SUVs with length of more than 4 metre are slapped with 43% of total tax incidence compared to the pre-GST tax amount of 55.30%. This 43% tax incidence includes 15% cess over and above the 28% GST. However, thanks to the lowered total tax amount Tiguan has become more affordable for the buyers.
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The Volkswagen Polo petrol model too has become cheaper by 2.5% thanks to the lowered tax amount. Currently, it is being taxed at 29% comprising 1% cess over and above the 28% GST. Earlier, the premium hatchback used to be taxed at 31.5%. Volkswagen Polo hatchback and Ameo compact sedan now come with price cut amounts ranging between Rs. 13,000 and Rs. 22,000.
The Vento and Jetta sedans have also become cheaper under the new tax system. These sedans are now cheaper by Rs. 30,000 – Rs. 75,000, which certainly makes these models more attractive and affordable compared to pre-GST period. Both these sedans have to pay 3.6% of less total tax incidence under the new tax structure.
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In the meantime, Volkswagen is preparing to break up its partnership with Tata Motors within few months after both the auto giants signed the deal of strategic partnership. The German automaker doesn’t find Tata Motors’ AMP architecture a cost effective platform. On the other hand, Tata Motors too have not shown much interest in the joint venture. While both the companies are still tight lipped about the future of the partnership, it seems they are about to part ways soon.
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