GST Effect: Tata Hexa, Tiago, Tigor Now Cheaper By Up To Rs. 2.17 Lakh
Sameer Contractor
1 min read
Jul 06, 2017, 06:16 PM
Key Highlights
- The Tata Safari and Hexa will see a price cut over Rs. 2 lakh
- Tata SUVs have seen a significant drop in overall prices
- Tata's luxury arm Jaguar Land Rover has already passed on the benefits
The Goods and Services Tax (GST) was finally implemented in the country with effect from 1st July 2017 and has seen a major transition across all sectors. In the automotive space, the new taxation norm has brought about a major change slashing prices across most car and bike segments, while prices on a handful of offerings have increased in the process. After Maruti Suzuki, Ford and Honda announced price cuts, Tata Motors is the latest manufacturer to join the list and has slashed prices between Rs. 3300 and Rs. 217,000 depending on the model and variant and this is good news for those wanting to buy the Hexa, Tigor among other cars from the Tata stable.
The Hexa is based on the same platform as the Aria
Tata has reduced prices up to 12 per cent across its models that comprise the entry-level Tata Nano going right up to the flagship Tata Hexa MUV launched earlier this year. Commenting on the price reduction, Tata Motors - President, Passenger Vehicles Business Unit, Mayank Pareek said, “We wholeheartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry."
The price reduction is good news for cars like the Tigor and the Tiago too especially since both cars were already very competitively priced. But while Tata Motors is yet to share the model wise prices for its offerings, expect to see a substantial difference on the Tata Safari Storme and Hexa models. The Tiago and Tigor have also gone cheaper in the process, while markets like Mumbai and Bangalore with higher pre-GST tax slabs have seen a higher price reduction overall. As per the new GST norms, cars across different segments and body styles have seen a tax reduction between 1.7 per cent (all sub 4-metre vehicles) and 12 per cent (all SUVs larger than 4-metres). Hybrid cars have seen an increase in taxes, with the new tax slab being 43 per cent, as against the previous 30.3 per cent.
The company also recently launched an AMT variant of the Tiago
Tata Motors had a disappointing June 2017 with domestic sales down by 5 per cent in year-on-year growth. However, there was some good news too as the Tiago clocked in over 1 lakh bookings in more than a year and that shows the growing popularity of the car in India. The company's passenger car numbers were down by 10 per cent and Tata said that the uncertainty towards the GST pricing was said to be the reason behind the low volumes. With its complete range receiving a significant price cut, sales are expected to perform better this month for the manufacturer. The company's luxury arm - Jaguar Land Rover has already passed on the GST benefits across its models.
Tata has reduced prices up to 12 per cent across its models that comprise the entry-level Tata Nano going right up to the flagship Tata Hexa MUV launched earlier this year. Commenting on the price reduction, Tata Motors - President, Passenger Vehicles Business Unit, Mayank Pareek said, “We wholeheartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry."
Tata's SUV range has seen a massive price drop
Tata Motors had a disappointing June 2017 with domestic sales down by 5 per cent in year-on-year growth. However, there was some good news too as the Tiago clocked in over 1 lakh bookings in more than a year and that shows the growing popularity of the car in India. The company's passenger car numbers were down by 10 per cent and Tata said that the uncertainty towards the GST pricing was said to be the reason behind the low volumes. With its complete range receiving a significant price cut, sales are expected to perform better this month for the manufacturer. The company's luxury arm - Jaguar Land Rover has already passed on the GST benefits across its models.
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