From Alto to Mercedes, prices of cars will be reduced by Rs 45,000 to Rs 10 lakh.

New Delhi. The decision of GST Council to reduce the tax slab will have a direct impact on common buyers. Experts say that from September 22, the prices of affordable cars like Maruti Suzuki Alto will reduce by Rs 45,000 to Rs 1 lakh. Currently the showroom price of Alto is Rs 4.23 lakh, which will become more affordable after the improvement. This change will bring great relief to middle class families buying a car for the first time.

Reduction of lakhs in luxury cars
The impact of GST reform is not limited to ordinary cars only, but will also affect luxury vehicles like Mercedes, Audi and BMW. Prices of Mercedes’ A-Class to S-Class may fall by Rs 2 lakh to Rs 10 lakh. Audi India has already indicated that the prices of its vehicles may decrease by four to six percent. Similarly, there will be a reduction of two to nine lakh rupees in the prices of BMW models X1 to X7.

Preparation of companies and enthusiasm of buyers
Companies like Tata Motors, Mahindra & Mahindra, Toyota Kirloskar and Renault India have also announced price reduction. The industry believes that GST reform will boost the demand for cars and there will be a strong increase in sales during the festive season. This step of the companies will not only benefit the customers but will also give new impetus to the auto sector, which was facing recession for some time.

Overall, GST reform has breathed new life into the auto sector. Now everyone, from small car buyers to those dreaming of luxury cars, will get the benefit. These changes, which will be implemented from September 22, are going to increase the brightness of the market during festivals.