New Delhi: Some of India's biggest automakers and retailers announced price cuts on Saturday as Asia's third-largest economy switched to a new nationwide sales tax at the stroke of midnight, replacing a host of provincial and national levies.
The Goods and Services Tax (GST), India's biggest tax reform in the 70 years since independence from British colonial rule, unifies the $2 trillion economy and 1.3 billion people into one of the world's biggest common markets.
Maruti Suzuki Ltd. India's biggest carmaker by sales, dropped prices on some models by up to 3 percent, passing the "entire benefit of GST rates" to customers. Maruti, however, said prices of two mild hybrid models, diesel versions of the sedan Ciaz and MPV Ertiga had increased by around Rs 1 lakh. under the GST regime, following withdrawal of tax concessions.
Other carmakers including Toyota Kirloskar, BMW and JLR on Saturday also slashed prices on their models due to decrease in taxes under GST.
The company has cut the price of its popular small car Alto by Rs 2,300 to Rs 5,400, WagonR Rs 5,300-Rs 8,300 and Swift Rs 6,700-Rs 10,700.
Toyota Kirloskar Motor slashed prices of its car between Rs 10,500 and Rs 2.17 lakh (ex-showroom Bengaluru). Fortuner price has been cut by up to Rs 2.17 lakh, Innova Crysta by up to Rs 98,500 and Corolla Altis by up to Rs 92,500. Price of Platinum Etios has been cut by Rs 24,500 and Etios Liva by up to Rs 10,500. However, Toyota hiked the prices of hybrid variants Camry and Prius by over Rs 3.5 lakh in Bengaluru and up to Rs 5.24 lakhs in Delhi as per applicable tax under GST. Luxury carmaker Jaguar Land Rover India also slashed prices of its car by upto 7 percent. It slashed price of Jaguar XE and XF by Rs 2.61 lakh, Jaguar XJ by 5 lakh and Discover Sport (5+2 swats) Rs 4 lakh.
The company has cut the price of its popular small car Alto by Rs 2,300 to Rs 5,400, WagonR Rs 5,300-Rs 8,300 and Swift Rs 6,700-Rs 10,700. Baleno price has been cut in the range of Rs 6,600-Rs 13,100 and Dzire between Rs 8,100-Rs 15,100. Ertiga petrol price has been cut by up to Rs 21,800 and Ciaz petrol by up to Rs 23,400. Vitara Brezza price has been decreased by Rs 10,400 and Rs 14,700 and S-cross has been cut in the range of Rs 17,700 and Rs 21,300.
Toyota Kirloskar Motor slashed prices of its car between Rs 10,500 and Rs 2.17 lakh (ex- showroom Bengaluru). Fortuner price has been cut by up to Rs 2.17 lakh, Innova Crysta by up to Rs 98,500 and Corolla Altis by up to Rs 92,500. Price of Platinum Etios has been cut by Rs 24,500 and Etios Liva by up to Rs 10,500. However, Toyota hiked the prices of hybrid variants Camry and Prius by over Rs 3.5 lakh in Bengaluru and up to Rs 5.24 lakhs in Delhi as per applicable tax under GST. Luxury carmaker Jaguar Land Rover India also slashed prices of its car by upto 7 percent. It slashed price of Jaguar XE and XF by Rs 2.61 lakh, Jaguar XJ by 5 lakh and Discover Sport (5+2 swats) Rs 4 lakh.
German luxury car maker BMW has also cut prices of its models, ranging from Rs 70,000 on base end version of X1 to Rs 1.8 lakh on the top end of its sedan 7 series. However, the company's hybrid model i8 will witness a hike of Rs 4.8 lakh to Rs 2.28 crore. Last month, Mercedes-Benz and Audi had announced passing on the GST benefit to customers.
ijoy for Apple buyers
Cupertino-based smartphone maker Apple on Saturday slashed retail prices of all its iPhone models by 4 to 7.5 per cent as it passed benefit of decrease in taxes to consumers under GST.
iPhone 7 Plus 256 GB will now cost Rs 85,400. It is the costlier iphone in India and was earlier priced around Rs 92,000. iPhone 7 ( 256) GB will now cost Rs 74,400 against around Rs 80,000, iphone 6 S plus 128 GB for Rs 65,000. iPhone SE 32 GB manufactured in Bengaluru by Wistron Corp will now cost Rs 26,000 against around earlier price of around Rs 27,200.
The new prices have taken the basic customs duty (BCD) of 10 per cent into account.
India has gained a significant place in the Apple scheme of things in the recent past. Apple CEO Tim Cook recently told Prime Minister Narendra Modi, who was visiting the US, that his company is positive about the production of the iPhone SE in Bengaluru.
