GST impact: Jaguar Land Rover slashes prices by average 7%.
Under the new GST, large luxury cars and SUVs with engine capacity of over 1,500 cc are slated to attract a 15% cess over and above peak rate of 28%, thereby bringing down the overall tax incidence compared to around 50% under the previous taxation system.business Updated: Jul 01, 2017 17:55 IST
Tata Motors-owned Jaguar Land Rover on Saturday reduced prices of its entire vehicle range in India on an average by 7% to pass on benefit of reduced tax incidence under GST.
The company said it is fully geared up for the new tax regime and its vehicles will be available under the new prices with immediate effect from any of its 25 retail outlets across India.
“On an average, on the basis of ex-showroom Delhi prices, the reduction in the prices of our vehicles across the range will be around 7%,” Jaguar Land Rover India president and MD Rohit Suri told PTI.
The Jaguar portfolio in India includes XE with a starting price of Rs 34.64 lakh, XF starting at Rs 44.89 lakh, F-Pace Rs 67.37 lakh onward and XJ with a starting point of Rs 97.39 lakh (ex-showroom prices across India).
On the other hand, the Land Rover range includes the Discovery Sport starting at Rs 40.04 lakh, Range Rover Evoque at Rs 42.37 lakh upward, Range Rover Sport beginning at Rs 89.44 lakh and Range Rover with a starting price point of Rs 1.59 crore (ex-showroom in India).
Under the new GST, large luxury cars and SUVs with engine capacity of over 1,500 cc are slated to attract a 15% cess over and above peak rate of 28%, thereby bringing down the overall tax incidence compared to around 50% under the previous taxation system.
Asked about the company’s preparedness of the new system, Suri said: “We are absolutely ready. We have been working on this for the last 8-9 months to be ready. Although we had to modify some of the earlier plans closer to GST implementation, even our partners and supply chain is ready.”
He said that with the GST regime kicking in, the company expects reduction in transportation time for its vehicles from the company’s Pune facility to different parts of the country.