Grand Vitara, HyRyder And City Hybrids To get Rs 5.5 lakh Cheaper If Nitin Gadkari’s Proposal Is Accepted: Details
Just a few days ago, the Union Minister of Road Transport and Highways, Nitin Gadkari, made a significant statement. He proposed that the GST on hybrid vehicles should be reduced from 48 percent to 12 percent. Following this, we made some calculations and told you how it could reduce the price of the Toyota Innova Hycross Hybrid. Now, going with the same calculations, we thought we should bring to you the prices of other popular hybrid cars in the country.
Maruti Suzuki Grand Vitara
Apart from the Toyota Innova Hycross, the other most popular hybrid car in the country is the Maruti Suzuki Grand Vitara. Currently priced at Rs. 20.09 lakh (ex-showroom), it too will get a huge price reduction if the proposed tax changes are implemented.
Presently, the vehicle is subject to a 28% GST rate and a 15% CESS. This significantly inflates its final price of this popular sub-compact SUV. However, considering the proposed reduction in GST to 12%, the cost dynamics of the Grand Vitara would undergo a substantial reduction.
First off, we have to find the current ex-factory cost of the Grand Vitara. For this, we deduct the applicable 28% GST and 15% CESS from the ex-showroom price. After doing the calculations, the ex-factory cost of the Grand Vitara comes to approximately Rs. 11.45 lakh.
After this, we have to implement the proposed GST reduction to 12%. So, by applying the new GST rate and adding the CESS, the new ex-showroom price after the tax reduction comes to Rs. 14.54 lakh. The difference between the two prices amounts to Rs. 5.55 lakh, which is a significant amount of savings.
Toyota Urban Cruiser Hyryder
Similarly, the Toyota Urban Cruiser Hyryder also carries a price tag as the Grand Vitara on which it is based. This means that the Urban Cruiser Hyryder will also get a massive Rs. 5-6 lakh price reduction.
Currently, the most affordable hybrid variant in the Urban Cruiser Hyryder lineup is priced at Rs. 16.66 lakh. Meanwhile, the most expensive top-spec hybrid variant costs Rs. 20.19 lakh. Overall, the Toyota Urban Cruiser Hyryder is Rs. 10,000 more expensive than the Maruti Suzuki Grand Vitara.
When the same calculations of reduced GST are done with the ex-showroom pricing of the Hyryder, the result comes out to be in the same ballpark as the Maruti Suzuki Grand Vitara.
Honda City Hybrid
The third car on this list is the Honda City Hybrid. This popular sedan’s hybrid version is currently priced at Rs. 20.39 lakh (ex-showroom). Therefore, utilizing the same method applied to the Grand Vitara, we calculate the current ex-factory cost of the Honda City Hybrid.
After subtracting the applicable 28% GST and 15% CESS from its ex-showroom price, the current ex-factory cost of the Honda City Hybrid is approximately Rs. 14.37 lakh. Now, after applying the proposed GST reduction to 12%, the new ex-showroom price comes out to about Rs. 18.25 lakh. Thus, the difference between the original and proposed ex-showroom prices amounts to around Rs. 2.14 lakh.
Now you may be wondering why the new ex-showroom price of the Honda City hybrid is so different in comparison to the Grand Vitara. Well, the answer is in the volume. Maruti Suzuki has lower margins on the Grand Vitara due to its sales volume of an average 12,000 units per month.
The Honda City hybrid, on the other hand, is produced in lower numbers. The average monthly sales figure of the Honda City hybrid is way less than the Grand Vitara. Hence, Honda has a bigger margin in its ex-showroom price.