GST impact on cars: Tata Motors offering discount up to Rs 2.17 lakh on select models

Written by | July 5, 2017 | 0

Goods and Service Tax (GST) has come as a boon for car buyers as various manufacturers have been announcing price cuts on their product lineups. The latest to join this series of price reductions is Tata Motors, which has announced GST price cuts up to 12 percent. The reductions will range between Rs 3300 and Rs 2,17,000, depending on the model and variant.

While the company has not clarified the exact reductions based on variants, buyers must be advised that the exact amount of price cut will differ according to the model and variant. GST has brought down prices on various car segments, even the tax on small cars has been lowered – small petrol cars are now taxed at 29 percent, while small diesel cars are now taxed at 31 percent.

In June 2017, Tata registered a dip in its passenger vehicle sales, while the commercial vehicle segment grew. The domestic sales witnessed a 5 percent decline, including commercial and passenger vehicles. The company sold 36,854 units as compared to June 2016.

Commenting on the price reduction, Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, “We wholeheartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country.

“This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry. Following the roll out of GST, we have decided to pass on the entire benefit to our customers. We are offering a price reduction of up to 12% ranging between Rs 3300 and Rs 217000 depending on the model and variant. With a strong focus to encourage positive buying sentiments, we have taken this step.”

Tata Motors’ popularity in on the rise, thanks to the brand embracing fresh design, such as the Tiago. It was launched in April 2016 and the hatchback has received over 1 lakh bookings in the domestic market. The Tiago is the first model in the company’s portfolio to be based on the IMPACT design philosophy and has sold over 65,000 units since its launch.

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