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The implementation of the Goods and Service Tax Bill (GST) in India has brought in a lot for the automobile industry in our country as the prices of almost all vehicles, particularly in the four-wheeler segment have been reduced. Automakers have already started transferring the benefits to the end consumers, from Maruti Suzuki to BMW and now also included in the list is Tata Motors. The homegrown automaker has now officially announced that due to the GST effect, the prices of its entire product portfolio, depending upon the model and variant have been reduced by up to 12 percent. What this means is that, Tata motors car’s prices in India will now be reduced, ranging in-between the INR 3,300 to INR 2.17 lakh. Related Story: GST Effect: Maruti Suzuki Swift, Baleno, Ignis & Vitara Brezza prices reduced
Currently Tata Motors has a total of 11 cars in its portfolio, of which the best seller at the moment is the Tiago compact hatchback. Launched last year, this city runabout recently crossed the milestone of selling 1 lakh units in India. Also, Tata Motors recently launched the Tigor notchback, based on the Tiago itself, to take on rivals like the Maruti Suzuki Dzire and Hyundai Xcent. Another recent entry, the last of Tata Motor’s new HORIZONEXT philosophy, is the Hexa MPV crossover. All three of them, along with others in the automaker’s portfolio are to get a price cut, depending upon which segment they fall into. Related Story: GST Effect: Toyota Innova Crysta, Fortuner & Corolla Altis prices dropped
Breaking it down for you, the Tata Tiago falls in the segment of under 4-meter cars which are equipped with a petrol engine which is less or equal to 1.2-litres. Hence according to GST, the Tiago will warrant a tax rate of 29 percent as opposed to the earlier 31.2 percent. This will reduce the prices of this hatchback by up to 2.5 percent than before. Similar is the case with the petrol derivative of the Tigor notchback. Also Read: GST effect on cars: Honda WR-V, City, BR-V, Brio & others get price cuts of up to INR 1.31 lakh
The diesel derivative of the Tiago and Tigor fall in the segment of under 4-meter cars which are equipped with diesel engines under 1.5-litres. This segment earlier used to warrant a tax rate of 33.25 percent but now cars will attract 31 percent tax. This is a reduction of about 2.25 percent.
Now coming to the Hexa, this MPV crossover falls in the segment of SUV which are above 4-meters in length alongside other Tata products like the Safari Storme. This segment is now to warrant a tax rate of 43 percent as against the earlier 55 percent, indicating a reduction of 12 percent; hence attracting the maximum benefits in terms of price reduction. Also Read: GST Effect: Ford Endeavour, EcoSport & Figo prices slashed
Commenting on the price reduction, Mr. Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, We whole-heartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry. Following the roll out of GST, we have decided to pass on the entire benefit to our customers. We are offering a price reduction of upto 12% ranging between INR. 3300 and INR. 217000 depending on the model and variant. With a strong focus to encourage positive buying sentiments, we have taken this step.”
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