Hyundai Motor India has just announced a price cut of up to 5.9% on its range of cars in India. This price cut has been made after the government of India rolled out the new GST taxation reforms in the country, which have been made applicable from July 1, 2017.
Under GST (Goods and Services Tax), taxes like excise duty, VAT, octroi, etc. have been demolished and replaced by a single tax – GST. This has helped bring down the applicable taxation rates on all segments of the automotive industry, excluding hybrid and electric vehicles. As a result, applicable taxes have gone down by 1.7% to 12.0%, with full size SUVs getting the biggest benefit.
Hyundai has become the latest automaker to pass on these benefits to customers and thus reduce prices of its portfolio of cars. It also must be noted that Hyundai doesn’t have a mild hybrid, full hybrid or electric car in its Indian line-up. As a result, no car in the company’s portfolio has suffered from a hike due to GST. This is unlike Maruti Suzuki, where the Ciaz and Ertiga have been given a price hike of around Rs. 1.2 lakh, owing to higher tax slabs on mild hybrid vehicles.
Hyundai is yet to announce the model-wise price changes on its range of cars due to GST. The new reduced prices have been made applicable from July 1, 2017.