Maruti Suzuki to cut prices across its entire model range by up to ₹1.29 lakh from September 22, passing on GST rate cut benefits.
Additional reductions on small cars beyond 8.5% GST benefit to make vehicles affordable for two-wheeler users.
Company to also pass GST benefit on car parts used in service/maintenance, lowering total ownership cost.
Maruti Suzuki India on Thursday announced a reduction in prices of its entire model range by up to ₹1,29,600 from September 22 to pass on the GST rate cut benefit to customers.
The country’s largest car manufacturer also said it has cut down prices of small cars over and above the GST benefit of 8.5% to make vehicles more affordable for two-wheeler users.
With effect from September 22, the company will pass on the full benefit of the recent reduction in GST rates on automobiles to customers, in line with the revised GST regulations taking effect on that date, the country's largest carmaker said in a regulatory filing.
To provide a further stimulus to the Indian passenger vehicle industry, the company has reduced the prices of entry-level cars, it added.
The prices of entry-level model S Presso will go down by up to ₹1,29,600; Alto K10 by up to ₹1,07,600; Celerio by Rs to 94,100; Wagon-R by up to ₹79,600 and Ignis by up to ₹71,300, the auto major said.
Price of premium hatchback Swift is reduced by up to ₹84,600; Baleno by up to ₹86,100; Tour S by up ₹67,200; Dzire by up to ₹87,700; Fronx by up to ₹1,12,600; Brezza by up to ₹1,12,700; Grand Vitara by up to ₹1.07 lakh; Jimny by up to ₹51,900; Ertiga by up to ₹46,400 and XL6 by up to up to ₹52,000, it added.
Similarly, prices of Invicto will reduce by up to ₹61,700; Eeco by up to ₹68,000 and Super Carry LCV by up to ₹52,100, the company said.
In a virtual press conference, Maruti Suzuki India Senior Executive Officer (Marketing & Sales) Partho Banerjee said the company has reduced prices on small cars over and above the GST benefit of 8.5 per cent to help two-wheeler users upgrade to cars.
"There can't be any better time than to really go for the motorisation in the Indian market. And as the car penetration in India is so low, at 34 per 1,000 people, it makes it all the more compelling reason that, being a market leader, we are taking this initiative to put India on wheels," he said.
The move of cutting prices on entry-level cars would help the segment stabilise after volume decline in the last few years, he added.
He noted that the company will pass on the GST rate cut benefit on car parts used in service and maintenance to reduce the overall total cost of ownership.
The company will also compensate its channel partners for the "strategic pricing" initiative, Banerjee said.
He noted that in the next financial year, the passenger vehicle market is going to bounce back to the earlier CAGR of 6 to 7%.
Maruti Suzuki shares closed almost flat at ₹15,802 per share on BSE.
