Your drive gets cheaper: Rs 36,000 on Alto to Rs 10 lakh on Mercedes S450

NEW DELHI: Get set for big price cuts across cars, SUVs, and two-wheelers as companies prepare to pass on the GST benefits to buyers just in time for the bumper festive season.On cars, where consumers had already stopped taking deliveries as they waited for GST cuts after the PM’s I-Day speech, the reductions will vary from around Rs 36,000 on the entry-level Alto to as much as Rs 10 lakh on the Mercedes S450 saloon.These are based on the estimates made by top industry analysts as well as research agency Crisil. Companies are yet to come out with official numbers on the reductions as their finance teams work overtime to factor in the impact of the tax cuts.Two-wheelers will also see reductions. For example, the popular Honda Activa scooter will see the price come down by as much as Rs 7,000 on the existing exshowroom price of Rs 81,000 (entry model).

In motorcycles, Bajaj Pulsar150 is likely to see a reduction of around Rs 9,500 on the current exshowroom of Rs 1.1 lakh.

In SUVs, Hyundai Creta is likely to see price come down by Rs 1.1 lakh (current ex-showroom Rs 11.1 lakh), while Maruti Brezza by Rs 90,000 (Rs 8.7 lakh). The Toyota Innova will likely see a cut of Rs 2.6 lakh on the current price of Rs 20 lakh.Companies say the cuts will fuel demand, and will be a strong booster to numbers in the festive period.

“This is a major reform that will give a boost to the entire economy... People will have more purchasing power and that would stimulate more demand and production. The 10% lower tax will stimulate a flagging market,” Maruti chairman RC Bhargava said.Sudarshan Venu, chairman of TVS, said GST cuts will “turbocharge growth” and significantly boost consumption across segments of the society. “It’s a welcome move as it will help two-wheelers become more accessible and also help those looking to upgrade.”Santosh Iyer, MD & CEO of Mercedes-Benz, said the tax cut is a significant proconsumer move. “It’s a leap towards creating a robust economy having higher consumption and spending power, leading to job creation.”Rajesh Jejurikar, CEO of M&M’s Auto and Farm Sectors, said the move will have a “far-reaching positive impact” in automotive and farming sectors. “The move makes tractors and farm machinery more affordable, reduces costs for commercial vehicles and improves accessibility for personal mobility.”Hemal N Thakkar, director at Crisil Intelligence, said demand will peak during the festive season, though uncertainties may persist post the initial euphoria. “Urban households are still not spending. Jobs cuts in IT and US tariffs impact will prevail.”