Should you wait for GST to buy your new car?
GST has caused quite a stir in the Indian market. The otherwise dull sales of June has seen selling volumes like never before. Months of monsoon, generally see below average car sales which get better from the month of September; thanks to onset of festivals. For the automobile sector, Government’s timing to roll-out GST couldn’t be any better. Not only has it made monsoon a good time to purchase vehicles but also its previous month has seen deals like never before in passenger vehicles. To fuel this high volume, different manufacturers have adopted different routes. Hyundai is encouraging people to purchase now and avail refund of money after GST comes into effect. Sector leader, Maruti has remained unaffected by the Pre-GST hype. Mahindra has rolled out discounts of upto Rs. 1 lakh on XUV. Volkswagen dealerships are offering discounts on Polo, Ameo and Vento, ranging between Rs 30,000 to Rs 40,000. Ford dealerships are giving discounts on Figo, Aspire and EcoSport of Rs 10,000 and exchange bonus of Rs 15,000.
Given the momentum in the market, we will have revisit the growth forecasts for the segment for the entire year. Other manufacturers might follow similar suit to keep up the sentiment of their highest selling vehicles.
Luxury cars are seeing discounts that have baffled even the customers. Luxury car customers are the most benefitted with the new tax regime in their favour now at 43%, previously being 55%.
Market leader, Mercedes cut prices by up to Rs 10 lakh on its India-made vehicles that will benefit from the introduction of GST. In the scheme of things, after German carmaker, Audi, announced special service and aftersales offers, they have also announced Audi Rush Price on their stock cars available with dealerships. An Audi A3 Premium Plus TDI diesel version which retailed at Rs 32.30 lakh, ex-showroom Mumbai, is now available for Rs 29.99 lakh. Similarly, there are unheard of discounts on the A4, A6 and Q3 where potential buyers can save over Rs 6 lakh, a considerable amount even for a luxury car buyer. BMW has cut prices of its 3-series and 5-series by almost 3–6 Lakhs and 6–12 lakhs on its premium luxury 7-series, X6, M6 and Z-4.
It is the demo and display cars that have become hot-sellers due to their already low pricing plus GST benefits.
So, should you wait till GST? No if you purchasing a small car, sedan and SUV, as their prices will remain same after GST. If you are going for a luxury car, and are getting an irresistible deal that you feel might not be feasible after GST, go for it, otherwise sit back and see what GST brings in for you.
And yes, you can avail still better prices than mentioned above through www.vler.in
