New Delhi: Auto maker Ford India is offering discounts of up to Rs30,000 on its compact SUV EcoSport, sedan Aspire and hatchback Figo to pass on benefits of new tax rates under GST, to be rolled out in July.
The company is offering discount on EcoSport in the range of Rs20,000 to Rs30,000. The compact SUV is now priced between Rs7.18 lakh and Rs10.76 lakh (ex-showroom Delhi).
On the other hand, Figo and Aspire are cheaper in the range of Rs10,000 to Rs25,000 depending upon the variant. While Figo is priced between Rs4.75 lakh and Rs7.73 lakh while Aspire compact sedan is tagged between Rs5.44 lakh and Rs8.28 lakh (all prices ex-showroom Delhi).
“We are happy to pass on (to customers) the expected benefits of GST ahead of its actual implementation,” Ford India vice-president sales Vinay Raina told PTI.
Last week, German luxury car maker Audi had slashed prices of its models in India by up to Rs10 lakh till June 30. The company sells a range of cars, ranging from A3 sedan to A8 premium sedan currently priced between Rs30.5 lakh and Rs1.15 crore.
Another German luxury car maker BMW also said it is offering “benefits up to 12%” on ex-showroom prices, that include GST benefits, depending on choice of model. Additional benefits include, reduced rate of interest of 7.9%, complimentary service and maintenance for three years and one year complimentary insurance.
Besides, Mercedes Benz has also announced slashing of prices of its vehicles produced in India by up to Rs7 lakh to pass on benefits of new tax rate under GST due in July. Mercedes Benz India locally produces nine models—CLA sedan, SUVs GLA, GLC, GLE and GLS, luxury sedans C-Class, E- Class, S -Class and Maybach S 500—which are priced between Rs32 lakh and Rs1.87 crore (ex-showroom Delhi). The price reduction ranges from Rs1.4 lakh on the CLA sedan to Rs7 lakh on Maybach S 500.
Large cars are expected to become cheaper due to lower tax incidence under GST as compared to the current system. Under the GST regime, cars will attract the top rate of 28% with a cess in the range of 1 to 15% on top of it. While small petrol cars with engine less than 1,200 cc will attract 1% cess, those with a diesel engine of less than 1,500 cc will attract 3% cess. Large cars with engine greater than 1,500 cc and SUVs with length more than 4 metres and engine higher than 1,500 cc will attract cess of 15%.