GST rate cut: Car prices to drop by up to Rs 1.5 lakh

NEW DELHI: Car companies have reduced prices of small cars by up to Rs 1.5 lakh after the GST rate cut. For petrol variants up to 1200cc and diesel variants up to 1500cc, the GST slab has been reduced from 28% to 18%. Major brands have announced that the entire benefit will be passed on to customers.

This is a major relief for middle-class buyers, and companies expect car sales to rise. The new slab will take effect from September 22, but Mahindra has already announced discounts in Kerala ahead of the Onam market, with reductions up to Rs 1.56 lakh.

18% GST and car price reduction

Petrol, CNG up to 1200cc: 11%
Diesel up to 1500cc: 13%

1201–1500cc: 5%
Above 1500cc: 8%

Electric vehicles: GST 5%

Models and price reductions

Maruti

Alto K10: ₹40,000
WagonR: ₹57,000
Swift: ₹58,000
Dzire: ₹61,000
Baleno: ₹60,000
Fronx: ₹68,000
Brezza: ₹78,000
Ertiga: ₹41,000
Celerio: ₹50,000
Ignis: ₹52,000
S-Presso: ₹38,000

Mahindra

Bolero: ₹1.27 lakh
XUV 3XO: ₹1.40 lakh
XUV 700: ₹1.43 lakh
Thar RWD: ₹1.33 lakh
Thar 2WD Diesel: ₹1.35 lakh
Thar 4WD Diesel: ₹1.01 lakh
Scorpio Classic: ₹1.01 lakh
Scorpio N: ₹1.45 lakh

Tata

Tiago: ₹75,000
Tigor: ₹80,000
Altroz: ₹1.10 lakh
Punch: up to ₹85,000
Nexon: up to ₹1.55 lakh

Renault

Kwid: ₹55,095
Triber: ₹80,195