Market analysts believe that if the GST is reduced by around 11 percent, the ex-showroom price of small cars could decrease by approximately 12 percent to 12.5 percent. This could translate to savings of around ₹20,000 to ₹25,000 per car for customers. This relief would be particularly beneficial for those looking to buy their first or a smaller car. The advantages would extend beyond hatchback cars, including compact SUVs like the Hyundai Exter and Tata Punch. Currently, the total tax on small cars is approximately 41-42%.
