Automakers are busy revising the prices as the GST has come into effect. While many of them had announced the revised prices almost a month ago, few of them were waiting for the things to be more clear.
Under GST, large cars and SUVs will attract a tax of 43%, compared to the earlier 55%. As a result, the Fortuner is now cheaper by up to Rs 2,17,000, while the Innova Crysta by up to Rs 98,500. The Corolla Altis sedan has got a price cut of up to Rs 92,500. With these new prices in effect, the much-loved Fortuner and Innova Crysta will sell even more.
However, the hybrid cars have taken the hit. Surprisingly, the hybrids which promote green motoring, will attract the same 43% tax, on par with luxury cars. There is an increase of 12.7%, which is without a doubt a massive number. Toyota has been selling Camry Hybrid and Prius Hybrid for a quite a while now. In fact, the Camry Hybrid outsells its standard petrol model. With such a high tax, the Camry Hybrid gets a price hike of over Rs 5.2 lakh, while the Prius (CBU import) is expensive by over Rs 6 lakh.
As the implementation date was nearing, there were reports of automakers meeting the GST council, for a request to reconsider the high tax on hybrids. It didn’t seem to have worked, and the question mark still remains as to why such a big number for them and what sense does it make.
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