GST brings down the prices of luxury cars
GST may have made some goods expensive for you but luxury cars are not one of them. Prices of cars like Mercedes-Benz, BMW, Audi and JLR have gone down by 10%. Other fancy cars like Lamborghini and Bugatti Veyron, i.e., cars that cost over Rs. 5 crore have become cheaper by over a crore. Octroi's abolishment in Maharashtra has only made it better.
Why are they cheapest in Maharashtra?
As the GST came into effect, the Maharashtra state government quashed its 52-year-old Octroi rule and local tax bringing down the prices. However, the state government raised the one-time registration tax on private vehicles by 2-percent to make up for the loss. But the Central government imposed an upper limit of Rs. 20 lakh on the tax amount making the raise practically ineffective.
Luxury-car market looks for expansion
After facing its first ever market fall in December 2016 due to the ban on diesel vehicles in the capital, luxury cars market is looking to make a double-digit growth with GST. Currently, Indian share in the luxury car market stands at a mere 1.2%. Looking for a market expansion, car makers slashed their prices by 2-9% to adjust to the GST rates.
Insurance to cost more
A hike of 3% in insurance cost would increase the on-road prices. But this change would have no significant effect on the overall prices.
