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