Jaguar Land Rover joins pre-GST price-cut list

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The execution of Goods & Services Tax (GST) is still a month away but the benefits are already coming in every day. Now luxury automaker Jaguar Land Rover India (JLR) has announced a price discount up to 12 percent. That translates to price benefits in the range of Rs.2 lakh to Rs.10.9 lakh. The revised prices come into effect immediately. 

“Execution of GST is a historical moment for India which will not only benefit consumers but is also expected to make the whole tax regime simpler and more transparent. We are satisfied to proactively pass on benefits linked to the predictable price decrease to our customers with immediate effect,” says Rohit Suri, MD, Jaguar Land Rover India.  

GST, the single indirect tax for the entire country, settled tax rates for over 1,200 items on May 19, 2017, with SUV and luxury cars being one of the major gainers benefiting from the new rates. The SUV segment which has seen good growth of 29.91 % in FY17 is presently subjected to a heavy tax structure of around 55 percent (for SUVs and large cars with engines bigger than 1,500cc). GST will effectively reduce this to 43 percent – 28 percent GST plus 15 percent cess – and this will act as a huge fillip to SUV as well as luxury car sales. 

Here are the details of the changed prices publicized by OEMs till now. 


JLR currently produces five nameplates in India – three Jaguar models XE, XF and XJ and two Land Rover models, Discovery Sport and Range Rover Evoque. As per the company, benefits to customers on select stocks will be passed in advance of the GST implementation.

Benefits will vary from state to state and will be in the range of Rs.2 lakh to Rs.5.7 lakh on the Jaguar XE and will go up to Rs.4 lakh to Rs.10.9 lakh on Jaguar XJ. On Discovery Sport and Range Rover Evoque, the benefits will vary from Rs.3.3 lakh to Rs.7.5 lakh.  


Mercedes-Benz India, which manufactures nine models – the CLA sedan, the GLA, GLC, GLE and GLS SUVs, and the C-class, E-class, S-class and May Bach 500 luxury sedans – announced price reduction ranging from 2–9 percent on its ‘Made in India’ product portfolio. In other words, a price reduction of Rs.1.4 lakh on the CLA sedan, to Rs.7 lakh on the Mercedes May Bach 500. 


Luxury carmaker BMW India has taken the GST rates as an opportunity to sweeten deals on its cars. In addition to passing on benefits up to 12 percent on prices of its select models, it has offered reduced rate of interest at 7.90 percent, complimentary service and maintenance for three years, complimentary insurance for one year and assured buyback up to four years, to ramp up sales. 


Another German carmaker, Audi, slashed priced of its models in India by up to Rs.10 lakh till June 30, 2017, and is additionally offering attractive finance and insurance schemes. “The attractive prices and packages bring fantastic value to the Audi enthusiasts. As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our new cars as well,” says Rahil Ansari, head, Audi India. 


Isuzu Motors India has also joined the bandwagon of leading automobile companies, passing on the price cut prior to the GST implementation. The company is offering discounts up to Rs.1.5 lakh on its models such as the newly launched MU-X and the V-Cross.


While Ford India has announced discounts to the tune of up to Rs.30, 000 on its compact SUV EcoSport, its compact sedan Aspire and hatchback Figo are cheaper by up to Rs.25, 000 as Ford passes on the benefits of GST to its customers.