The commodity and services tax reduces the price of cars, reduce up to $ 1.55 per cde. Here is what Tata and Maroti offer

The leading Indian auto manufacturers have started transferring the benefits of recent discounts in the commodity and services tax rate directly to customers. Tata Motors has announced a price reduction of up to $ 1.55 per cde via multiple models, while Mahindra and Mehindra said it would extend the full benefit of buyers.

This announcement comes a day after the Chairman of Maruti Suzuki India RC BHARGAVA confirmed that the company will also reduce prices in line with the revised tax structure. “With the latest discounts in commodity and services tax, we are advancing that the small car market, which was growing, will now grow this year by more than 10 percent.”

He added that Maruti’s Alto may witness a decrease in prices of $ 40,000 – $ 50,000, while Wagon R may become 60,000 – 67,000 dollars cheaper.

The decision of the Commodity and Services Tax Council to rationalize tax rates is the most important review of the auto industry for years. The tax on small cars (less than 4 meters, with engines less than 1200 cm for gasoline and 1500CC diesel) was reduced to 18 %, down from the previous 29-31 % range, including CESS. For larger cars – those with a length of 4 meters, or more than 1500 cc, or 170 mm ground clearance – the total tax has been reduced to 40 %, a decrease from 48-50 %.

Tata Motors has published the price reduction list, which shows the saving:

• 75,000 dollars on Thiago
• 1.10 dollars to Altroz
• 85,000 dollars on the punch
• $ 1.55 for Coson on Nexon
• $ 1.40 for Harier
• 1.45 dollars on Safari

Other models such as Tigor and Curvv will also witness low prices. The company noted that the exact discounts may vary according to the variable and urge customers to emphasize the approved showrooms.

“This reduction in the goods and services tax in a timely manner,” Shailish Chandra, MD from Tata Motors and Tata Passenger Electric Vehicles in a report. “We convey the entire benefit to the customer.”

Meanwhile, motorcycles of less than 350 cc also will also be seen by tax exemption, which is now 18 % tax instead of 28 %, providing an additional dilution of two wheels.