Mumbai, July 7: Tata Motors on Thursday joined a number of automakers in announcing post-GST reduction the prices of its vehicles, effectively passing on the benefits of the new tax regime to its customers. The ex-showroom prices (the price at which the car will be sold to the retail customer) has been slashed for Tata vehicles by 12 per cent, reports said today.
The reduction in prices of cars is a result of subsuming of all indirect taxes like excise duty, value added tax and various cesses into the Goods and Services Tax that came into effect from July 1, 2017. GST has had a largely positive effect on the automotive industry. The price cut will be in the range of Rs 3300 and Rs 2.17 lakh, depending on the model of the car and its variant, said an abplive.com report.
Tata Motors is yet to specify price reduction of individual models. Speaking about the price reduction, Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors told Indian Express, “We wholeheartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country.” Under GST, the tax on small cars has been lowered, with small petrol cars put in the 29 per cent tax slab and small diesel cars put in the slab of 31 per cent.
So far, similar price reduction announcements have been made by Jaguar Land Rover, Audi, Ford, Honda, Toyota and Maruti Suzuki, said the report. Honda Cars had announced on Monday that it was cutting down prices of its products by upto Rs 1.31 lakh. The company’s hatchback Brio became cheaper by up to Rs 12,279 and its Sedan Amaze also became cheaper by up to Rs 14,825.