BMW X7 SUV gets cheaper in India by ₹9L
What's the story
BMW has announced a major price cut for its flagship X7 SUV after the recent Goods and Services Tax (GST) reforms. The model will now cost ₹9 lakh less than before. The move comes as part of a broader industry trend, with Tata Motors and Mahindra also announcing similar price cuts across their vehicle line-ups.
Tax changes
GST '2.0' benefits passed on to customers
The GST Council's recent tax overhaul has affected the Indian auto market. The new structure has a flat 40% tax on luxury cars, down from the previous 50%. This translates into savings of 8-10% for buyers of premium brands such as BMW, Mercedes-Benz, and Audi. Under the old system, luxury cars were taxed at a total levy of nearly 50%, including a compensation cess.
Price reductions
Price cuts on Tata's passenger vehicle line-up
Tata Motors has announced price cuts of up to ₹1.55 lakh across its entire passenger vehicle line-up, effective September 22. The company said the price cuts will be applicable on models such as the Tiago, Tigor, Altroz, Punch, Nexon, Curvv, Harrier and Safari. For instance, the Nexon will be cheaper by ₹1.55 lakh while the Harrier and Safari will see a reduction of up to ₹1.40 lakh and ₹1.45 lakh, respectively.
Immediate effect
Mahindra also announces price cuts
Mahindra has also announced that it will pass on the GST benefits to customers across its ICE SUV portfolio with immediate effect. Popular models like Thar, Scorpio, Bolero, XUV700 and Scorpio-N will now come at a discount of ₹1.01-₹1.56 lakh depending on the model and variant. The Bolero and Bolero Neo are cheaper by up to ₹1.27 lakh, XUV300 Petrol gets a cut of ₹1.40 lakh, and XUV300 Diesel leads with a reduction of ₹1.56 lakh.