Several other supercar manufacturers are expected to reduce pricing of their models soon; McLaren could come to India thanks to lowered tax
Supercars were never this much cheaper before. Under the Goods and Services Tax, the supercars in India have seen a significantly lowered total tax incidence compared to the pre-GST era. Thanks to this, the Italian supercar manufacturer Lamborghini has reduced price of the Aventador S by over Rs 1.02 crore in India. This car was launched here in March this year at Rs. 5.01 crore (ex-showroom, New Delhi).
As GST subsumes multiple central and state taxes, the total tax amount for the supercars has been lowered than before. The octroi has been removed as well, which impacted the pricing. The insurance price has gone up by 3% for the supercars, but that seems negligible compared to the savings in total pricing the customers can avail. Road tax for the supercars has been capped at Rs. 20 lakh.
Now, with the tax incidence lowered significantly, luxury supercar and sportscar brands present in the domestic market are expected to announce the price reduction soon. These companies include the Aston martin, Ferrari, Porsche etc. Pricing of the luxury cars are also being lowered as these models also draw lowered total tax amount compared to pre-GST era.
Luxury car manufacturers like Mercedes-Benz, Audi and BMW have already lowered the pricing of their products in the country. Now, other brands like Rolls Royce, Bentley are also likely to join the bandwagon soon. Interestingly, launch of GST could pave the way for other luxury car brands too. We might see the McLaren coming to India with its exclusive range of supercars in near future.
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The GST not only reduces pricing of the supercars and luxury cars. Updated road tax structure has been designed in order encourage the buyers to register their cars inside the state, as this has been noticed earlier that several sportscar and luxury car customers register their vehicles outside of state.
Lamborghini Aventador S Gallery