With the government’s decision to lower taxes on cars, manufacturers have begun to adjust their prices downwards. Industry analysts anticipate price reductions ranging from ₹45,000 to as much as ₹10 lakhs across various models, including the Maruti Suzuki Alto and the Mercedes-Benz S-Class. The revised pricing will be in effect from September 22, potentially offering savings of ₹45,000 to ₹1 lakh for smaller vehicles.
The Maruti Suzuki Alto, the most affordable entry-level vehicle, currently has a showroom price of ₹4.23 lakhs. Luxury brands such as Mercedes-Benz could see price decreases from ₹2 lakhs up to ₹10 lakhs across models from the A-Class to the S-Class.
The GST Council has recently made substantial changes to the GST system, removing the 28% and 12% tax slabs and reducing the scope to 5% and 18%. Small cars have been placed under the 18% bracket, which formerly had a 28% GST and a 1% cess. This modification will result in a total tax cut of 11% for smaller cars. The new pricing will be effective from September 22, corresponding with the commencement of Navratri. SUVs and luxury cars are set to be taxed at a 40% GST rate. Previously, these vehicles were subject to a tax of between 40% and 40%, inclusive of cess.
Audi India has indicated that car prices are likely to decrease by between 4% and 6% once the GST rates are applied on September 22. Final pricing details will be released shortly. Similarly, BMW Group India’s X1 to X7 models are expected to see price reductions ranging from ₹2 lakhs to ₹9 lakhs. Several other companies, including Tata Motors, Mahindra & Mahindra, Toyota Kirloskar Motor, and Renault India, have already announced their price reductions.