GST has come into effect, and carmakers are rushing to announce the updated prices for their cars. Among the car segments, utility vehicles and big luxury cars have seen the biggest relief in prices. Taxes on these categories have dropped from the earlier 55 percent to 43 percent.
Before the announcement of GST, Toyota had posted a sales slump in June 2017. This slow-down was attributed to potential buyers delaying purchases until the implementation of GST. The Japanese carmaker’s offerings have seen up to a 13 percent dip in prices, which, the company says, it has fully passed to buyers.
The popular Innova Crysta MPV is cheaper by up to ₹98,500, the Corolla Altis sedan by up to ₹92,500, and the Fortuner SUV up to ₹2,17,000. These models, already popular in their respective segments, are likely to see a spike in demand after the price-cuts.
Price drops for the Etios sedan are in the region of ₹24,500, while the Liva hatchback is more affordable by about ₹10,500. These new prices are sure to help ramp the carmaker ramp up its sales figures in the coming months.
Camry and Prius hybrids get costlier
The only class of cars to have gotten costlier under the GST regime are hybrids. They are 12.7 percent costlier, and as a result, hybrid cars from Toyota Kirloskar Motor, Maruti Suzuki and Mahindra & Mahindra have become significantly cheaper.
For instance, Toyota’s Camry and Toyota Prius hybrid cars are over ₹3,50,000 dearer in Bengaluru and as much as ₹5,24,000 costlier in Delhi post July 1.