GST Rate Cut: Tata Motors to Mahindra Slash Car Prices, Festive Season Demand to Rise
Indian automobile market has received a very happy news which can become a jackpot for car buyers. After the new decision of GST Council, major carmakers like Tata Motors, Mahindra & Mahindra and Renault have announced to reduce the prices of their vehicles. This GST Rate Cut will be officially implemented from 22 September, and this has created a new positive sentiment in the car market. This update is important for both car lovers and investors because its effect is being seen not only in the showroom but also in the stock market, where investors have their eyes on M&M share price, Tata Motors share price and Hyundai share price.
GST Rate Cut will Change Car Market Equation
According to the decision of the 56th GST Council, tax on small cars has been reduced from 28% to 18%, while a flat 40% slab has been kept for big cars and SUVs. The biggest thing is that now there will be no additional cess, which earlier made the price quite expensive for consumers. Petrol and diesel cars with bigger engines were earlier taxed at almost 50%. But now those cars have come under the 40% GST slab. Small diesel cars (up to 1500cc and less than 4 meters) will also now have to pay only 18% tax. For electric vehicles, only 5% GST has been kept, which will further encourage EV adoption.
Mahindra Cars After GST Rate Cut
Mahindra & Mahindra has decided to reduce the prices of its passenger cars from 6 September. The company has announced that now customers will get a direct benefit of up to ₹ 1.56 lakh on buying their favourite car. This price cut will be applicable on its popular models and buyers will be very happy with it, especially during the festive season. At the same time, Renault has also reduced the prices of its cars, in which customers are getting a reduction of up to ₹ 96,395. These moves of both the companies are creating excitement in the market and will prove to be a very attractive offer for car buyers. This is a big step which will definitely boost the demand, especially during the festive season when people plan to buy new vehicles. This is the reason why M&M share price is also seeing positive momentum, as investors feel that GST Rate Cut will increase both sales growth and revenue.
Tata Motors Cars After GST Rate Cut
Tata Motors is also not backing down. The company has announced a price cut of up to ₹1.55 lakh on its car range. Tata Motors’ new rates will be applicable from 22 September. The biggest good news for customers is that Tata Nexon is getting the highest discount, which is reaching up to almost ₹1.55 lakh. Whereas, the lowest benefit of up to ₹65,000 has been given on the Tata curve. This move can directly take Tata’s demand curve upwards and due to this Tata Motors share price is also seeing a sharp rise.
Renault Cars After GST Rate Cut
Renault India is also ready to make its customers happy. The company has announced a price cut of up to ₹ 96,395 on its passenger vehicles. Entry-level models like the Renault Kwid will see a reduction of ₹ 49,000 to ₹ 57,000. This is an attractive offer for car buyers, especially for those customers who are looking for budget-friendly options. This is the reason why there is a lot of buzz among buyers regarding Renault car price updates.
Mercedes Cars After GST Rate Cut
There is good news for luxury car lovers too. Mercedes-Benz has confirmed that all its models (excluding EVs) will now attract 40% GST. Electric Mercedes vehicles still attract 5% GST, which creates an incentive for premium EV buyers. This decision could also see movement in the premium market.
Biggest and Smallest Price Reductions
Among the new announcements from all carmakers, Tata Nexon and Mahindra XUV3XO Diesel have received the biggest price benefit. Tata Nexon buyers are saving up to ₹1.55 lakh, while Mahindra XUV3XO Diesel buyers are benefiting up to ₹1.56 lakh. On the other hand, Renault Kwid and Tata Curvv buyers will get comparatively less discount, which is in the range of ₹ 49,000 to ₹ 65,000.
Festive Season Demand Increases
This GST Rate Cut has been announced at the right time, as the festive season is about to come. In India, people consider it auspicious to buy a new car during festivals like Diwali, Navratri. Now that companies have reduced their car prices, there is definitely going to be an increase in customer rush at dealerships. This will directly impact the sales numbers of car companies and indirectly on the stock market as well. That’s why automobile stocks like M&M share price, Hyundai share price, Tata Motors share price have become a hot pick for investors.
Disclaimer:
This article is for informational purpose only. The price cuts and share market references given in it are based on publicly available information. Always consult your financial advisor before taking any investment decision.
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