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New Delhi: It seems that price cuts across the automobile range of small cars, SUVs and two-wheelers with the companies now waiting for passing the GST benefits with the festive season approaching. Following Prime Minister Narendra Modi's speech, the auto industry had seen a slump in sales, where GST cut was mentioned first. The new reductions will cary going from Rs 36,000 on the entry-level Alto and goes to Rs 10 lakh on the premium car like Mercedes S450 saloon.
These estimates comes from the industry’s top analyst and grom research agency Crisil. Most companies haven’t given the exact figure though Tata has released the reduction who have handed a handsome number in terms of reduction prices. All vehicle companies are working out the tax cuts still.
In Suvs, Hyundai Creta is likely to have a price relief of Rs 1.1 lakh with Maruti Brezza having a chance at price reduction go down by Rs 90,000. The Toyota Innova which was priced at Rs 20 lakh will now likely see a price reduction of 2.6 lakh.
Two-wheelers will also see good reductions with Honda Activa prices going down by Rs 7,000 which earlier had a price of Rs 81,000. Motorcycles like the Bajaj Pulsar 150 will also see a hefty price cut of Rs 9,500. Overall companies are projecting a growth in car sales especially with festive season coming close.
Maruti chairman RC Bhargava noted that the reform will have a major positive impact on the economy. The purchasing power will increase and more demand and production will be the ultimate result. Speaking in the same tune was Santosh Iyer, MD and CEO for Mercedes-Benz, noting that it was a jump towards making the economy strong and more spending power will only increase job opportunities.
Director of Crisil Intelligencem Hemal N Thakkar felt that the demand will be at its best in the festive season though there could some instability following the initial surge. There’s also consideration to be made for the job losses in IT and the impact of US tariffs felt Thakkar.
