With predictions of reduced pricing of passenger vehicles following implementation of GST from July 1, customers in India experienced considerable confusion as regards their purchase decisions in June, in lieu of benefiting from the tax cut on most vehicles effected by the country’s biggest-ever tax reform. For many vehicle manufacturers, all of June went into stock rationalisation, especially at the dealer end, with most dealers focussing on liquidating their existing inventory so as to not carry it forward into July. The key reasons for this was the upcoming drop in prices and a very grim clause from the government to credit only the excise duty paid on all vehicles procured […]Read more..
With GST now implemented, we take a look at its impact on car prices. While most vehicle categories were expected to see a reduction in taxation, it remained to be seen how much of this benefit was going to be passed down to the consumer. With the new tax structure now in effect, most cars from major manufacturers have seen reductions, but hybrids are subject to a 12.7 percent hike in effective tax. The move is a result of the government’s drive to promote electric vehicles, as hybrids were reported to be gaining an undeserved advantage. Honda Honda has announced GST price cuts on various models ranging from Rs. 5,000 […]Read more..