TATA MOTORS, RENAULT CUT PRICES TO PASS ON GST BENEFIT

Auto majors Tata Motors and Renault India on Wednesday reduced prices of passenger vehicles by up to ₹2.17 lakh, passing on GST benefits to customers.

Tata Motors cut passenger vehicle prices between ₹3,300 and ₹2.17 lakh while Renault’s price reduction ranges from ₹5,200 to ₹1.04 lakh.

Under the GST regime, passenger vehicles now attract top rate of 28% with a cess in the range of 1 to 15%, but the total tax incidence on a majority of vehicles has come down, except for hybrids segment.

“We are offering a price reduction of up to 12% ranging between ₹3,300 and ₹2,17,000, depending on the model and variant,” Mayank Pareek, president, passenger vehicles business unit, Tata Motors, said in a statement.

The Mumbai-based company has cut prices of its SUV Hexa ranging between ₹1.04 lakh and ₹2.17 lakh, hatchback Tiago by up to ₹52,000 and compact sedan Tigor by up to ₹60,000.

Renault has also cut price of its hatchback Kwid Climber AMT between ₹5,200 and ₹29,500, SUV Duster RXZ AWD between ₹30,400 and ₹1,04,700 and that of Lodgy Stepway RXZ between ₹25,700 and ₹88,600.

On Tuesday, Mahindra and Mahindra announced reduction in prices of its utility vehicles and SUVs by up to 6.9% on an average. Similarly, the company reduced prices of small commercial vehicles.

Companies including Honda Cars India, Ford, Maruti Suzuki, Toyota Jaguar Land Rover, BMW, Mercedes-Benz and Audi have already reduced prices to pass on GST benefits.