GST effect on cars: Isuzu Motors joins Mercedes-Benz and Audi, offers discount of Rs 1.5 lakh
The discounts have come against the backdrop of recent changes in the existing tax structure after the country announced new Goods and Services Tax rates.
- May 29, 2017,
- Updated May 29, 2017 6:13 PM IST
Days after Mercedes-Benz and Audi slashed their prices by up to Rs 10 lakh, Isuzu Motors India is offering discounts of up to Rs 1.5 lakh on its models such as the newly-launched MU-X and the V-Cross.
The discounts have come against the backdrop of recent changes in the existing tax structure after the country announced the new Goods and Services Tax rates. After GST is rolled out, the luxury car market will be the biggest beneficiary as prices will come down due to lower tax.
Under current taxation system, SUVs and other luxury cars are taxed above 50 per cent, however, once the GST is effective the prices on these cars will come down to 43 per cent. The price cut is expected in the tune of Rs 1.25-10 lakh depending on the models and segments.
Isuzu Motors is latest to join luxury car makers Mercedes-Benz and Audi to pass on the GST benefits to the consumers. Earlier in the week, Mercedes-Benz India reduced prices by up to Rs 7.5 lakh of its locally assembled cars and SUV's with immediate effect.
Mercedes-Benz India MD & CEO Roland Folger termed it a customer centric initiative and said: "As a customer centric initiative, we are now passing on the benefits of post-GST pricing of our 'Made in India' cars with immediate effect."
"To ensure complete peace of mind for our customers, we have decided to pass on the GST tax benefits at an earlier stage at our cost. This approach will benefit the customers who want to purchase a locally produced Mercedes-Benz from now on and during the month of June," he further said.
Another German automaker Audi also announced the price reduction on entry level A3 sedan to flagship A8 sedan. "As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our new cars as well," Audi India Head Rahil Ansari said in a statement.
Days after Mercedes-Benz and Audi slashed their prices by up to Rs 10 lakh, Isuzu Motors India is offering discounts of up to Rs 1.5 lakh on its models such as the newly-launched MU-X and the V-Cross.
The discounts have come against the backdrop of recent changes in the existing tax structure after the country announced the new Goods and Services Tax rates. After GST is rolled out, the luxury car market will be the biggest beneficiary as prices will come down due to lower tax.
Under current taxation system, SUVs and other luxury cars are taxed above 50 per cent, however, once the GST is effective the prices on these cars will come down to 43 per cent. The price cut is expected in the tune of Rs 1.25-10 lakh depending on the models and segments.
Isuzu Motors is latest to join luxury car makers Mercedes-Benz and Audi to pass on the GST benefits to the consumers. Earlier in the week, Mercedes-Benz India reduced prices by up to Rs 7.5 lakh of its locally assembled cars and SUV's with immediate effect.
Mercedes-Benz India MD & CEO Roland Folger termed it a customer centric initiative and said: "As a customer centric initiative, we are now passing on the benefits of post-GST pricing of our 'Made in India' cars with immediate effect."
"To ensure complete peace of mind for our customers, we have decided to pass on the GST tax benefits at an earlier stage at our cost. This approach will benefit the customers who want to purchase a locally produced Mercedes-Benz from now on and during the month of June," he further said.
Another German automaker Audi also announced the price reduction on entry level A3 sedan to flagship A8 sedan. "As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our new cars as well," Audi India Head Rahil Ansari said in a statement.