Maruti Suzuki has reduced pricing of most of its cars by 3% to pass on GST benefit to the customers
Maruti Suzuki has slashed pricing of its cars by up to 3% to pass on the GST benefit to the customers. Apart from Ciaz SHVS and the Ertiga SHVS pricing of the other Maruti Suzuki cars have been lowered, while these two cars have become pricier as due to GST hybrid cars attract a total tax incidence of 43% comprising the 15% cess over and above the 28% GST.
The Indo-Japanese auto manufacturer has introduced the reduced pricing of the cars in various segments across the country and these pricing will vary across locations depending on the Value Added Tax (VAT) rates that were applicable prior to the new tax system.
Maruti Suzuki’s managing director and CEO Kenichi Ayukawa has said that government of India and all the policy makers deserve congratulations on the successful introduction of GST. The company believes that it will directly improve the efficiency and ease the business process in the country. Speaking about the auto industry, luxury cars, big SUVs become more affordable due to the new tax system, while the small cars experience marginal price change.
Under the new pricing, popular small cars from the band including Alto, Celerio, WagonR etc has received price benefits around Rs. 5,000. However, GST has brought a big blow to the hybrid cars like Maruti Suzuki Ciaz SHVS and Ertiga SHVS along with other hybrid cars in the country.
Also read: 8 Upcoming Maruti Suzuki Cars in 2017-2018
Apart from the 43% total tax incidence, government of India has also withdrawn the three-stage discounts from the hybrid cars that used to be offered under the FAME scheme to promote environment friendly powertrain equipped cars that emit lesser or zero emission. It was rumored that Maruti Suzuki will introduce the SHVS technology to the upcoming new generation Swift and now it is to be seen what becomes the next step from the brand.
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