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Wednesday, 24 August 2016 00:00

Prices of SUVs and Sedans may drop: GST effect

The GST bill is going to make the tax structure simpler. The Goods and Services Tax bill is going to replace the taxes both at state and central level. This results in the drop in the different ex-showroom prices across the country.

The automobile manufacturers may also revise their price structure as the tax rate is reduced. The excise duty is a key factor in GST bill. In future, the difference between excise duty between full size and compact sedan may come around 6-8%. This may pull the customers to go for the heavy vehicles instead of compact ones as the price difference may not be high enough. The present tax structure forced many manufacturers such as Honda, Hyundai,Maruthi Suzuki, Volkswagen, Tata etc to bring the vehicles that measure 4 metres in length.

Market analysts are expecting after GST bill that the prices of compact SUVs may come down and there will be increase in demand for the heavy vehicles. If you want to buy a car, wait till next year. There may be decrease in the price of your dream car.

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