The Indian automotive industry is buzzing with speculation about potential GST reforms. The government is exploring options to streamline the Goods and Services Tax structure, which could involve reducing tax rates. This could particularly benefit buyers of smaller and mid-sized cars, potentially leading to more affordable prices. If you’re in the market for a new car this festive season, like the Creta, Venue, Exter, or i20, here’s a look at how these changes might impact their pricing. Currently, small cars face a 28% GST plus a 1% cess, resulting in a total tax of roughly 29%. If the government lowers this to 18%, consumers could see a substantial 10% tax reduction, translating to lower car prices. Consider a car with an ex-factory price of ₹5 lakh; its price could currently reach ₹6.45 lakh due to taxes. Under the new system, the same car might cost around ₹5.90 lakh, saving the customer roughly ₹55,000. If the GST is decreased from 28% to 18%, significant price drops are expected for the following models. The Hyundai Exter, starting at ₹5,99,900, currently has ₹1,73,971 in taxes. A GST reduction could save buyers around ₹59,990. The Hyundai i20, priced at ₹7,50,900, could see a price decrease of about ₹75,000. The Hyundai Venue, currently at ₹7,94,100, may offer savings of approximately ₹79,400. The Hyundai Creta, a popular SUV, with a starting price of ₹11,10,900, could result in customer savings of approximately ₹1,11,000. Middle-class buyers aiming for budget-friendly new cars stand to gain the most. Hatchbacks and compact SUVs could see savings between ₹60,000 and ₹80,000.
Diwali Gift? Anticipated Price Reductions for Hyundai Cars Following Potential GST Cuts
