A lot of steel winds in their place to stimulate the sale of small cars, says Maruti Executive

New Delhi: Maruti Suzuki will lower the car prices in his product portfolio to expand the full benefits of the lower goods and service tax (GST) rates. The largest car manufacturer in India would also offer extra price reductions on some models.

The price reduction, ranging from £ 46,000 on the MPV Eleya to £ 129,000 on the Small Car S-Presso, includes both the GST benefits and the price stimidates offered by the company to stimulate the sale of the car.

Partho Banerjee, Senior Executive Officer (Marketing and Sales) at Maruti Suzuki, said that the company has lowered the prices for small cars above the net benefit of 8.5% of the reduced GST to upgrade two -wheelers to cars.

On the S-Presso, the automaker has expanded a price payment of 12.6-24%on the Alto K10 of 10.6-20%, Celerio of 8.6-17%and the car of 8.7-14%. The entry level Alto car will see a maximum of £ 1.07 Lakh price reduction. Prices of SUVs such as Fronx and Brezza have also been reduced to £ 1.12 Lakh.

The revised prizes will be rolled out in line with the updated GST instructions from 22 September, which coincides with the second stage of the festive season. The load is reduced to 18% for small cars less than 4 meters long from 29-31% (GST and CESS). Larger cars and SUVs will attract a special GST percentage of 40%compared to the current 43-50%.

“We are convinced that the sale of small cars has fallen due to affordability issues,” said Banerjee. “Now there are various steel winds as a result of lower GST, income tax plates revisions that were announced in the budget earlier this year and lower interest rates.”