Prices of luxury cars drops up to 10%
Words by: FWD Media Images: Various sources
With GST coming into force in India, luxury cars have become a bit more affordable. After the adoption of GST, prices of luxury cars like Mercedes-Benz, BMW, Audi and JLR has declined up to 10% or Rs 10 lakh. The year 2016-2017 saw sales of 35,000 vehicles in the luxury car segment.
Tata Motors-owned Jaguar Land Rover was the first one to announce the reduced prices through effective advertising run. Talking on GST, Roland Folger, MD at Mercedes-Benz said that they are looking forward to the simplified tax structure creating a single market across India and benefiting the buyer and the seller.There may be teething issues but we are confident that there will be promising long term gains. We are encouraged with the rising enquiries and increased footfall at our dealerships and are confident of continuing with our positive growth momentum.
The company has also lowered JLR prices after the pound declined in the aftermath of Brexit. Reports suggest that cars would become a further 5-7% cheaper with the introduction of the GST. Welcoming the new tax reforms, Rahil Ansari, head of Audi India says the new realigned prices offer great opportunity to expand the market and widen our customer base.
Rates Pre and Post GST
- Small Cars (length<4m)Petrol Pre GST Rate – 31.40% Post GST Rate -29%
- Small Cars (length<4m)Diesel Pre GST Rate – 33.40% Post GST Rate -31%
- Mid Size (length>4m with engine < 1500 cc) Pre GST Rate – 46.60% Post GST Rate – 43%
- Bigger Cars (length>4m with engine > 1500 cc) Pre GST Rate – 51.80% Post GST Rate – 43%
- Sports Utility Vehicles Pre GST Rate – 55.30% Post GST Rate – 43%
- Hybrid Vehicles Pre GST Rate – 30.30% Post GST Rate – 43%
VikramPawah, MD at BMW India says share of luxury cars could rise to 5% of local market and the automaker would seek to expand market through greater accessibility and better financing options.