PANAJI
Car buyers in Goa are preparing for a shift in pricing as the nationwide Goods and Services Tax (GST) cut drives down prices of vehicles across India. From entry-level hatchbacks to luxury SUVs, the revised rates – effective September 22 – are set to slash prices by anywhere between Rs 65,000 and Rs 8.9 lakh, depending on the model.
Dealers are getting ready to sell even their existing stock at the revised rates, though not all of them will continue the generous in-house discounts that have long sweetened the deal for buyers.
At Maruti Suzuki outlets, among the biggest sellers, customers have been enjoying cash discounts of Rs 30,000 to Rs 40,000, on top of company offers and free accessories worth a similar amount. Those extras may shrink as the new tax regime takes effect.
“The new GST rates, anyway, give a tariff cut. We won’t discontinue our showroom offers, but at the most, reduce the cash discount,” one Maruti Suzuki staff member told The Goan.
The staff further explained that if full payment for the car is made and delivered before September 22, the existing offers will continue. “From September 22, prices will drop and along with this, the offer packages will be smaller,” he added.
Hyundai and Tata Motors have taken a different route, halting invoicing while continuing to accept bookings so that customers benefit from the lower GST rates once they kick in.
“We want our customers to avail the new GST benefit. That is why we have kept invoicing on hold,” a Hyundai showroom staff member explained. Hyundai buyers in Goa can expect savings ranging from Rs 70,000 to Rs 2.4 lakh on 12 models from September 6 itself, as per details shared with The Goan.
Tata Motors, which has recently surged to the top of the sales chart, is following a similar path. “We are accepting bookings but invoicing is being done for September 22 or later,” said a Tata dealer, adding that while some cash discounts and free accessories remain, those benefits are likely to shrink once the new pricing structure is implemented.
Tata too has announced a massive price change from Rs 42,500 to Rs 1.48 lakh, depending on the car models and variants.
The Mahindra Group, meanwhile, wasted no time. It became one of the first to pass on the GST cut, announcing new pricing from September 6.
The impact extends beyond cars. Motorcycle dealers are also preparing to pass on benefits, with two-wheelers under 350cc taxed at 28 per cent while larger bikes carry a 3 per cent compensatory cess, taking their rate to 31 per cent.
Electric vehicles, however, remain untouched by the GST changes, as they continue to attract just 5 per cent tax. Yet, dealers fear the tax slash on petrol and diesel cars could hurt demand further.
“Our EV prices are unchanged. But with fuel cars now becoming cheaper, EV sales could slow even more,” one dealer said. EV sales in Goa have already fallen sharply, plunging by 80 per cent in the first quarter of the year.
