GST 2.0: Jeep SUVs see price cut worth ₹4.8L
What's the story
Jeep has announced a major price cut on its entire SUV range in India. The new prices, which will be effective from September 22, will see reductions of up to ₹4.8 lakh across models such as Compass, Meridian, Wrangler, and Grand Cherokee. This comes as a result of the government's effort to rationalize tax slabs across various passenger vehicle categories under the GST 2.0 framework.
Tax changes
GST 2.0 reforms and their impact on small vehicles
The GST 2.0 reforms have simplified tax slabs across the board. For instance, small petrol-powered passenger vehicles under four meters with engines smaller than 1,200cc now attract an 18% GST instead of the previous 29%. Similarly, small diesel vehicles under four meters with engines smaller than 1.5-liter have seen a reduction from a hefty 31% to just 18%.
Tax reduction
Changes in tax slabs for midsize and large vehicles
Midsize segment sedans and SUVs, which were earlier taxed at 45%, now fall under a lower slab of 40%. Large SUVs and premium vehicles that were earlier taxed at 48-50% have also been brought down to the same slab of 40%. This has resulted in a major price cut for larger SUVs like those offered by Jeep.
Price adjustments
Wrangler sees biggest cut, Grand Cherokee also benefits
The changes under GST 2.0 have been welcomed by Jeep India, with the company announcing major price cuts on its SUV range. The Wrangler sees the biggest cut of up to ₹4.84 lakh, while the Grand Cherokee is cheaper by as much as ₹4.5 lakh. The Compass and Meridian also get benefits worth ₹2.16 lakh and ₹2.47 lakh respectively under these new tax slabs.
Market influence
Boosting demand during the festive season
The GST 2.0 reforms are expected to boost demand during the festive season, especially for SUVs that already dominate India's passenger vehicle market. By passing on the entire benefit of these tax cuts, Jeep India is likely to attract new customers and existing SUV owners looking to upgrade their vehicles. This move could further strengthen Jeep's position in the Indian automotive market.