Maruti Suzuki, the country's largest carmaker, has announced its decision to pass on the benefits of Goods and Services Tax (GST) to customers in India. With the new uniform tax in place, the prices of Maruti Suzuki cars set to go down by up to three percent.
However, the hybrid models of Maruti Suzuki like Smart Hybrid Ciaz diesel and Smart Hybrid Ertiga diesel will cost more as the tax on the models in this category will go up to 43 percent from 30.3 percent. The revision in prices will be effective from July 1.
"The company has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by up to three percent," Maruti Suzuki said in a statement.
Also read: GST effect on cars, bikes, scooters & SUVs: What will come cheaper and what will cost more?
With the announcement, Maruti Suzuki joins the list of carmakers like Audi, BMW, Mercedes-Benz and Jaguar and Land Rover (JLR) to cut the prices of its models. Other carmakers are expected to follow suit shortly and announce the decision on Saturday.
Maruti's portfolio includes Alto, Wagon R, Celerio, Swift, Dzire, Ertiga, Omni, Eeco, Gypsy, Vitara Brezza, which are sold through the regular dealerships of the company and Nexa premium models like S-Cross, Ciaz, Ignis and the Baleno.
Under GST, the cars and SUVs attract a lower tax rate than the previous one. Many carmakers in the country have offered a steep price cut across their model range to woo the customers as the buyers were waiting for the GST roll out.
