GST Impacts Mahindra Cuts Prices of Utility Impact
India’s favourite and the largest SUV and tractor manufacturer Mahindra & Mahindra Ltd. (M&M Ltd.) on Tuesday revised prices of its vehicles to keep in sync their rates with that of the Goods and Services Tax regime (GST). The company slashed down the prices of its utility vehicle by an average of 6.9 percent. The prices of small cars were cut down by an average of 1.4 percent, as stated by the recent media.
Mahindra & Mahindra
The end-prices for light commercial vehicles and also the heavy commercial vehicles have been reduced by an average of 1.1 percent and 0.5 percent respectively. With the Goods and Service Tax (GST) implementing, the event has turned out to be hugely favourable for the home-grown car manufacturer. Mahindra offers both electric vehicles and SUVs in India, both have received the highest tax benefits post the launch of Goods and Services Tax regime (GST).
The company has thereby decided to pass on such benefits to the valued customers by announcing a reduction in price for the said models in India. The company is taking time and is yet to announce model-wise price reduction. The overall prices of Mahindra UVs and SUVs have seen reduction by an average of 6.9 per cent. The cars that come under small car segment have been slashed down to an average of 1.4 per cent.
Mahindra & Mahindra’s top players – the XUV500 and Scorpio fall under the 4 metre and above category. They perceived an additional cess of 15 per cent, that results in a total of 43 per cent, that accounts for a 12 per cent low in the tax structure as before such an event. This means that the XUV500 and Scorpio will be able to gain a considerable drop. The sub-4 metre models like the TUV300, gets the 1.5-litre diesel engines, brings the overall tax reduction of 2.25 per cent. The Mahindra KUV100 also falls under the 1 per cent cess bracket with its 1.2-litre petrol and diesel engines.
The electric vehicles too, on the other hand, come under the 12 per cent GST slab, that has been able to see a tax drop of 7.5 per cent from the earlier 20.5 per cent. Mahindra Electric, the EV arm of Mahindra and Mahindra will announce the price reductions on the e2o Plus and e-Verito very soon. This will gain them more customers than ever.
With the new tax reform in the country, the auto industry is very positive about the growth in sales in the upcoming months, all due to the reduction of prices across segments, barring the hybrids. Most of the car manufacturers have already revealed reduced prices for their models as of now. Even the two-wheeler companies have passed on the benefits to the customers. Overall, the vehicle market has seen a heavy reduction in the car prices since the advent of the Goods and Service Tax regime. This will increase the customer count for the various companies and will also increase sale thereby. A much beneficial aspect to such an event.
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