GST Effect: Maruti Prices Drop 3 Per Cent, Smart Hybrids Get Expensive

Maruti is passing on the GST benefits of up to 3 per cent to its customers, except for the mild-hybrid Ciaz and Ertiga diesel models.  

Maruti Suzuki has passed on the benefits of the goods and services tax (GST), effective July 1, 2017, for all its models, except for the mild-hybrid diesel offerings, to its customers. The country’s largest automaker has slashed prices across the entire range by up to 3 per cent. However, while most of the Maruti range gets cheaper, the diesel Ciaz and Ertiga will get more expensive.

Why? Well, both these models used to benefit from the government subsidies given to hybrid/mild-hybrid vehicle. These benefits are no longer applicable and hence, hybrid/mild-hybrid cars face the same tax burden as normal petrol/diesel powered cars. As a result, the Ciaz and the Ertiga SHVS (Smart Hybrid Vehicles by Suzuki) are now expensive by over Rs 1 lakh!   

The reduction is a result of the implementation of GST from today. Various taxes such as excise duty, value added tax, different cesses etc. have been replaced by GST and the impact for the automotive industry has largely been positive. 

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Maruti was planning to launch more SHVS-equipped models for the Indian market, but things look uphill now considering the increased taxes on mild and hybrid vehicles. Other manufacturers, including Hyundai, were also reportedly planning for the same.  

Stay tuned for our detailed report on the post-GST pricing of Maruti’s lineup as the automaker is anticipated to release the same soon.   

Related stories on GST 

• Impact of GST On Car Prices In India
• GST Effect: Premium Cars Become More Enticing
• GST On Hybrids: "18 Per Cent And No Cess", Ask Automakers

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