Car dealers in the twin cities are upbeat over the introduction of GST as the single tax system will bring down the prices of cars and this is expected to drive the growth of the market.
According to dealers, tax paid on the vehicles had come down on all models/variants except for the hybrid cars. The drop in taxes ranges from a high of 12 per cent in SUVs while it would be 1.7 per cent in case of less than four-meter cars depending on the variants.
According to Vinay Saboo of RK Motors, the drop in prices could be anywhere between Rs. 5,000 to Rs. 25,000 depending on the variants and it was much higher in case of high end cars. “There is no need to pay central excise, VAT and other duties. There is a sort of uniformity in the tax structure now,” he said.
Consumers are, however, watching the developments in the two wheeler markets as there is no certainty on the exact quantum of decrease in the prices on two wheelers. There was heavy rush for purchase of two wheelers ahead of the launch of the GST, but the showroom are registering marginal business since Saturday. “The base prices have come down anywhere between Rs. 1,100 and 1,800 depending on the model. But clarity on the prices is likely to be there in the next couple of days,” P. Surender Reddy, sales manager at a Honda showroom said.
