It is decided that GST shall be implemented from July 1 onwards, affecting auto industry in particular. It was discussed recently that luxury car makers shall benefit from GST setting more than small cars as the latter shall possess 2 to 3 per cent extra cess as compared to the former. Also, the coming times see an expansion of customer base in a rural area with increasing industrialisation and monetary influx in such areas, call it urbanisation instead. Therefore, the demand for scrapping small cars and buying that one big luxury sedan has become a trend in such areas specifically.
We see many car manufacturers providing notable discounts on their vehicles to attract customers pre-GST setup. The brands are BMW, Audi, Mercedez-Benz and Jaguar, denoting all the fancies of Indian luxury fanatics dropping their prices altogether.
Jaguar Motorworks has dropped prices of its hunky Land Rover by 12 % on 5 locally assembled models.
BMW also dropped it by 12% on ex-showroom prices.
All the nine India based assembly vehicles under Mercedez-Benz have witnessed a 4% reduction in the costs, ranging between 1-7 lakhs
Audi has straight away cut prices by 10 Lakhs prior to the further benefits of GST introduction.
