GST 2.0: Tata Motors Expects Customers To Save Up To Rs 1.45 Lakh On New Cars

Tata Motors Ltd. said on Friday that it would cut passenger vehicle prices, ranging between Rs 75,000 and Rs 1.45 lakh, effective Sept. 22 to pass on the full benefit of GST reduction to customers.

The Mumbai-based auto major said that small cars Tiago, Tigor, Punch and Altroz will see a price drop of Rs 75,000, Rs 80,000, Rs 85,000 and Rs 1.1 lakh, respectively.

Mid-sized model Curvv would also see a price cut of Rs 65,000, Tata Motors said in a statement.

Prices of the company's premium SUVs — Harrier and Safari — will see a price reduction of 1.4 lakh and Rs 1.45 lakh respectively, it added.

"The reduction in GST on passenger vehicles, effective Sept. 22, is a progressive and timely decision that will make personal mobility more accessible for millions across India," said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd.

"Tata Motors will fully honour the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers. This will make our popular range of cars and SUVs even more accessible across segments, enabling first-time buyers and accelerating the shift towards new age mobility for a wider spectrum of customers,” he added.

The GST Council, earlier this week, approved limiting slabs to 5% and 18%, effective from Sept. 22. Under it, petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length would move to the 18% rate.

All automobiles exceeding 1,200 cc and longer than 4,000 mm will be charged with a 40% levy.

(With PTI inputs)