Skoda, Nissan and Hyundai pass on GST benefits to their customers
With the advent of GST, the automobile industry is facing a mixed response. While prices of few segments of cars have risen, prices of cars in other segments seem to have benefitted from the GST. Recently, Skoda, Nissan and Hyundai have announced the post GST pricing of their products and it looks like the customers stand to benefit with the new pricing.
Hyundai Motor India Limited, the country’s second largest car manufacturer and the largest passenger car exporter today announced to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto 5.9% Ex-showroom Delhi. The new prices are effective from July 1, 2017.It currently has ten car models across segments – Eon, i10, Grand i10, Elite i20, Active i20, Xcent, Verna, CRETA, Elantra and Santa Fe and has a huge manufacturing facility in Sriperumbudur near Chennai.
Meanwhile, SKODA Auto India also has announced revised pricing across its entire model range. The new prices are in line with the revised tax structure defined by the GST; the new prices are effective from 1st July 2017. The prices within the Superb model range have seen the maximum change with a revision up to 7.3 % resulting into a price benefit of up to 2.4 lakhs. The revision in the Octavia model range varies from 4.9% to 7.4 % resulting in a maximum benefit of Rs 1.75 lakhs.
Japanese auto major, Nissan Motor India Pvt. Ltd. too has announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been reduced by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive move for both automobile manufacturers and customers. We are happy to pass on the benefits to our customers for a more attractive value proposition.”